African Export-Import Bank (Afreximbank) has participated in a syndicated term loan facility for Nigeria’s Bank of Industry (BOI), valued at up to €2 billion (euros). The partnership, signed in London, sees Afreximbank acting as one of the Initial Mandated Lead Arrangers, Bookrunner, and Facility Agent.
Afreximbank disbursed its portion of €175 million in September 2024, divided into two tranches: €115 million in Tranche A and EUR 60 million in Tranche B. The bank also played a crucial role in the early bird syndication and in facilitating the financial close, contributing to the successful disbursement of funds from all participating lenders.
The €2 billion facility is designed to finance trade and trade-related projects for eligible Nigerian corporates, aiming to drive economic growth and industrial transformation in the country. Mr. Denys Denya, Senior Executive Vice President at Afreximbank, commented, “This transaction highlights Afreximbank’s ongoing commitment to Nigeria’s economic development. Through our active participation, we are not only providing vital financing to BOI but also empowering Nigerian businesses to grow and thrive.”
Dr. Olasupo Olusi, Managing Director of Bank of Industry, expressed appreciation for Afreximbank’s role, stating, “This facility reflects the confidence global financial institutions have in BOI and its impact on Nigeria’s economic transformation. We are grateful for Afreximbank’s support, which will enable us to fund critical projects that foster sustainable growth across Nigeria.” The facility is structured into two tranches, with Tranche A guaranteed 85% by the Africa Finance Corporation (AFC) and 15% by the Central Bank of Nigeria (CBN), while Tranche B is fully guaranteed by the AFC.
The facility has a three-year tenor, with quarterly repayments commencing after the first year.