Nigeria’s Bank of Industry (BOI), the nation’s largest and most reliable development finance institution, has achieved a groundbreaking milestone by securing a €2 billion syndicated loan. This historic financing was facilitated by the Africa Finance Corporation (AFC), which played a pivotal role as the guarantor, global coordinator, bookrunner, lead co-arranger, and underwriter of the deal.
The announcement, made on Wednesday, December 4, 2024, marks the largest capital raise in BOI’s history and the largest syndicated loan ever secured by an African development finance institution. The funds will primarily be used to support trade and trade-related projects for eligible Nigerian businesses, boosting economic development across the country.
A New Standard in African Development Finance
Executive board member and head of financial services at AFC, Banji Fehintola, hailed the deal as a transformational achievement.
“This successful syndication is a significant milestone, not only for BOI but for Africa’s financial landscape. AFC is proud to have served as a trusted bridge between global investors and critical infrastructure projects in Africa,” Fehintola said.
He also acknowledged the contribution of Standard Chartered Bank, AFC’s joint coordinator, and other participating financial institutions whose collaboration ensured the success of the syndication.
Managing Director of BOI, Olasupo Olusi, described the €2 billion financing as a testament to the institution’s growing reputation on the global stage.
“This is the sixth international capital raising for BOI, and it represents the largest fundraising in our history. The success of this transaction underscores the enduring support of our international funding partners, including AFC, whose role was instrumental,” Olusi stated.
The syndicated loan was supported by a consortium of international lenders, including:
- Standard Chartered Bank
- African Export-Import Bank
- First Abu Dhabi Bank PJSC
- FirstRand Bank Limited (Rand Merchant Bank division, London Branch)
- Mashreqbank PSC
- SMBC Bank International PLC
- Absa Bank (Mauritius) Limited
- Absa Bank Limited (Corporate and Investment Banking division)
- Export-Import Bank of India (London Branch)
AFC leveraged its A3 credit rating (with a stable outlook from Moody’s) to secure the confidence of these international financial institutions.
Impact on Nigeria’s Economic Development
Also the €2 billion facility will serve as a catalyst for growth by empowering trade-related projects, fostering economic resilience, and improving Nigeria’s position in global trade markets. BOI’s continued focus on development finance and strategic partnerships solidifies its role as a key driver of economic transformation in Nigeria.
This milestone further underscores the growing confidence of global investors in Nigeria’s economic prospects and the ability of African institutions to deliver high-impact financial solutions.
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