The Bank of Industry (BOI) announced yesterday that it successfully secured a landmark €1.43 billion loan, achieving a remarkable 142.5 per cent subscription in the senior phase of its global loan syndication. This syndication includes a 42.5 per cent oversubscription, reflecting the bank’s strategic positioning in the global financial market. The loan facility, a blend of fully guaranteed and partially guaranteed tranches backed by the Africa Finance Corporation (AFC), further solidifies BOI’s reputation as a robust institution supporting Nigeria’s industrial growth.
This milestone comes on the heels of the bank’s previous €1 billion term loan syndicated facility, which was raised in July 2022 and successfully repaid in July 2024. The timely repayment of that loan showcased BOI’s financial resilience and enhanced the confidence of international investors in both the bank and the Nigerian economy. The latest subscription underscores the increasing trust foreign investors place in Nigeria’s future growth prospects.
In an official statement, BOI’s Managing Director/Chief Executive Officer, Dr. Olasupo Olusi, highlighted the significance of the transaction. “This is the largest syndication in the bank’s history and a testament to the hard work and dedication of the management of BOI,” said Olusi. He further noted that the proceeds from this loan would be channeled toward meeting the growing demand for BOI’s funding across Nigeria, especially within the private sector.
Dr. Olusi is a distinguished economist and seasoned development finance expert, with over two decades of experience driving economic reforms and shaping fiscal policies. His background, which includes key roles at the World Bank and the International Finance Corporation (IFC), has greatly benefited BOI, positioning the institution to attract major global financial institutions for collaborative initiatives. His leadership has been pivotal in BOI’s current trajectory, securing funds at lower interest rates and with longer tenures, all aimed at bolstering the growth of Nigeria’s private sector.
The success of this syndication aligns with President Bola Ahmed Tinubu’s economic vision, emphasizing the importance of creating a thriving private sector supported by accessible and affordable financing. Olusi expressed gratitude for the support received from the Central Bank of Nigeria (CBN) and other governmental agencies, emphasizing that such collaboration has been instrumental in ensuring the bank’s success in the global financial market.
BOI appointed the AFC and Standard Chartered Bank as Global Coordinators for the €1 billion syndicated term loan facility, with the potential for an additional €1 billion through an accordion feature. The syndication saw prominent financial institutions, including the African Export-Import Bank, First Abu Dhabi Bank PJSC, FirstRand Bank Limited (London Branch), Mashreqbank psc, SMBC Bank International plc, and Standard Chartered Bank, serve as Initial Mandated Lead Arrangers and Bookrunners.
The loan facility has also attracted other significant players, with Absa Bank Limited (through its Corporate and Investment Banking division) and the Export-Import Bank of India (London Branch) joining as Initial Mandated Lead Arrangers. This strong participation from both African and international banks demonstrates a broad-based confidence in Nigeria’s financial institutions and economic potential.
Olusi assured that under his leadership, BOI would continue to collaborate with global development financial institutions to secure better loan terms for Nigerian enterprises. The bank remains committed to providing affordable and accessible financing solutions for Nigeria’s growing industrial sector, with the aim of stimulating economic growth and creating job opportunities.
