BoI Completes €1bn Euros Landmark Transaction
The Bank of Industry (BoI) has announced the successful completion of a landmark €1billion guaranteed senior loan facility to further enhance its capacity to deliver on its mandate in line with the Federal Government’s economic diversification agenda.
The Managing Director of the bank, Kayode Pitan, said that at a time when international capital markets are shut to many borrowers, and when capital is prohibitively expensive, through this innovative transaction structure and the AFC Guarantee, BoI was not only able to raise liquidity but also able to diversify its funding sources and attract new lenders.
According to him, the Initial Mandated Lead Arrangers (IMLAs) and underwriters for the senior phase of the transaction, led and coordinated by Africa Finance Corporation (AFC) and Standard Chartered Bank, include Abso Bank Limited (acting through its Corporate and Investment Banking division); First Abu Dhabi Bank PJSC; FirstRand Bank Limited (London Branch), acting through its Rand Merchant Bank division; Moshreqbonk PSC, Nedbank Limited, London Branch; and SMBC Bank International Plc.
The bank added: “A syndicate of financial institutions arranged by the IMLAs has indicated strong interest in participating in the general phase of the ongoing syndication, and BoI has an option to increase the facility size up to €1.5 billion after the general syndication.
“The deal is quite unique and the first of its kind by any financial institution in Nigeria both in terms of its size and structure.”
The transaction structure leverages the strong investment grade credit rating of AFC (rated A3 with a Stable Outlook by Moody’s) to wrap and credit-enhance BoI, thereby benefiting from favourable terms that would otherwise not be available, especially in these highly volatile markets.”