RMB helps facilitate Nigeria’s Bank of Industry syndicated loan

MEDIA RELEASE

31 OCTOBER 2022

Nigeria’s Bank of Industry closes landmark syndicated loan at €1bn

The Bank of Industry (BOI), Nigeria’s leading Development Finance Institution (DFI), has announced the successful completion of a landmark EURO 1 billion Guaranteed Senior Loan Facility.

The deal is the first of its kind by any financial institution in Nigeria in terms of its size and structure comes with a guarantee from Africa Finance Corporation (AFC).

Miranda Abraham, Co-Head of Loan Syndication in the RMB Debt Capital Markets team in London, which acted as lead arranger, bookrunner and underwriter for the capital raise, said: ”At a time capital raising via traditional bond markets is expensive for African borrowers it is particularly pleasing to see the Bank of Industry use innovative methods such as syndicated loans to raise liquidity while diversifying its funding sources and attracting new lenders.” 

The proceeds of this deal will be utilised to provide medium to long-term finance to Nigerian Micro, Small and Medium Enterprises (MSMEs) as well as large enterprises at affordable Naira interest rates, in line with President Buhari’s economic diversification agenda.

The transaction structure leverages the investment grade credit rating of AFC to wrap and credit-enhance BOI thereby benefiting from favourable terms that would otherwise not be available in highly volatile markets. 

This is the 5th time BOI has successfully raised funds in the international markets since 2018. Earlier this year RMB Debt Capital Markets also helped raise €750m in ‘Super Eagle’ Eurobonds for BOI. 

AFC, ABSA, First Abu Dhabi Bank, Rand Merchant Bank, Mashreqbank, Nedbank, Standard Chartered and Sumitomo Mitsui Banking Corporation worked together on the deal in various roles. 

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Contact:

Susan Craig l RMB [UK] l susan.craig@rmb.co.za