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Nigeria's Bank of Industry raises US$1.11bn

The bank is poised to catalyse domestic production and job creation on a transformational scale. (Image source: stevepb/Pixabay)

The Bank of Industry (BOI), Nigeria’s oldest and  largest development financing institution, has raised US$1.11bn from the international capital market, with an aim to serve its customers better

The BOI, owned by the Nigerian Central Bank and the Nigerian Federal Ministry of Finance, said that the fund would  improve its capacity  continue to supporting effectively the micro, small, medium and large enterprises  across major sectors of Nigerian economy with “affordable loans of medium to long-term tenor, alongside moratorium benefits.”

African Export-Import Bank (Afreximbank), Credit Suisse, Rand Merchant Bank and Sumitomo Mitsui Banking Corporation were the joint mandated lead arrangers, underwriters and book runners of the syndicated medium-term facility. The investors included those lead arrangers along with other 20 international financial institutions.

In a statement, the bank stated that the transaction is a further confirmation of the acceptance of the bank in international financial market, following its first successful fund raising transaction in 2017 which raised US$750mn. A crucial factor that led to the success of this deal was the impressive credit ratings as well as the strategic partnership that the bank had developed with the Nigerian commercial banks which provide credit enhancements and de-risking tools to BOI customers.

With the successful conclusion of the facility, the bank is poised to catalyse domestic production and job creation on a transformational scale, enhance local industry competitiveness, attract domestic and foreign investments, integrate local industries into domestic regional and global value chains, grow export earnings and positively impact the overall economic developments of Nigeria.

 

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