By Ayomide Otitoju
The African Export-Import Bank (Afreximbank) has joined a consortium of financial institutions to finalize a historic €2 billion syndicated term loan facility for Nigeria’s Bank of Industry (BoI). The signing ceremony took place in London, marking a significant milestone in efforts to bolster Nigeria’s industrial and economic transformation.
In a statement released on Tuesday, Afreximbank disclosed its pivotal role as an initial mandated lead arranger, bookrunner, and facility agent for the transaction. The continental bank had earlier disbursed €175 million in September 2024, split into two tranches: €115 million under Tranche A and €60 million under Tranche B.
Afreximbank also facilitated the early bird syndication in August 2024 and oversaw the processes leading to the financial close and disbursement of funds by all participating lenders.
The syndicated facility is designed to fund trade and trade-related projects for eligible corporates in Nigeria, enabling the BoI to finance critical sectors. This structure, which pools resources from multiple lenders, spreads risk and provides access to substantial financing that might not otherwise be available from a single institution.
Speaking on the transaction, Afreximbank’s Senior Executive Vice President, Denys Denya, highlighted its significance: “This landmark transaction underscores Afreximbank’s commitment to supporting Nigeria’s economic growth. By participating as a lender, bookrunner, and agent, we are providing critical financing and facilitating access to resources that will empower Nigerian businesses and drive sustainable development across the country.”
BoI’s Managing Director, Dr. Olasupo Olusi, lauded the confidence of global financial institutions in the bank’s operations. “This €2 billion syndicated facility is a testament to BoI’s proven track record and its pivotal role in Nigeria’s economic transformation,” Olusi said. “We are grateful for Afreximbank’s significant participation and unwavering support, which enables us to finance critical projects and foster sustainable growth for corporates nationwide.”
The facility, structured into two tranches, is backed by robust guarantees. Tranche A is 85% guaranteed by the Africa Finance Corporation (AFC) and 15% by the Central Bank of Nigeria (CBN) for both principal and interest. Tranche B is fully guaranteed by the AFC. The loan has a three-year tenor with quarterly repayments beginning after the first year.
This achievement follows BoI’s recent announcement of a $50 million loan portfolio guarantee agreement with the African Guarantee Fund, supported by the African Development Bank’s AFAWA initiative. The partnership aims to boost MSME growth through gender inclusion, youth empowerment, and green initiatives, further solidifying BoI’s role in driving sustainable economic development in Nigeria.
