African Export-Import Bank (Afreximbank) has announced the closing of a $1 billion 3-year syndicated term loan for the Bank of Industry (BoI), Nigeria’s state-owned development bank.
The Facility provides much needed support to Nigerian businesses across key sectors and is the largest international syndicated loan to a Nigerian financial institution since the onset of the pandemic-induced economic difficulties.
The transaction was jointly arranged with Credit Suisse and involved a syndicate of 27 investors.
Afreximbank, along with Credit Suisse, acted as Joint Coordinating Mandated Lead Arrangers (MLAs), Underwriters and Bookrunners. Afreximbank was the Facility Agent and Security Trustee.
The Africa Finance Corporation, Rand Merchant Bank, SMBC, and the Export Import Bank of China also joined the deal as Mandated Lead Arrangers and Bookrunners.
This transaction follows a previous €1 billion syndicated facility for BoI, which closed in March 2020.
Given the current adverse market conditions, the transaction constitutes a significant achievement for the parties involved.
Importantly, the deal demonstrates the capacity of financial institutions to continue their vital activities during the pandemic and their positive attitude to African risks. The $750 million underwriting provided by Afreximbank and Credit Suisse, which provided the BoI with certainty of funds, distinguishes this transaction as among the few debt financings to be underwritten since the onset of the COVID-19 pandemic.
Benedict Oramah, president of Afreximbank, said: “Afreximbank is pleased to have once again worked with its partners to facilitate access to international finance at a time it is most needed. The Bank of Industry is a pivotal development finance institution in Nigeria under able leadership. We are proud to have been given the opportunity once again.”
