The African Export-Import Bank recently joined a consortium of financial institutions in London to sign a historic syndicated term loan facility for the Industrial Bank of Nigeria (BOI), worth up to €2 billion , APA learned this Wednesday.
As part of a consortium that mobilized €2 billion in favor of the BOI, Afreximbank disbursed for its participation the amount of 175 million euros in September 2024, in two tranches: 115 million euros for tranche A and 60 million euros for tranche B.
Afreximbank acted as one of the first mandated lead arrangers, bookrunner and agent of the facility.
Afreximbank was also involved in the processes leading to the financial close and disbursement of €2 billion by all lenders, including the anticipated syndication in August 2024 as agent of the facility. The BOI is expected to use the proceeds from the facility to finance trade and trade-related projects of eligible businesses in Nigeria.
« Significant transaction highlights Afreximbank’s commitment to supporting Nigeria’s economic growth “, said Mr. Denys Denya, First Executive Vice President of Afreximbank in a statement. He added: “ By actively participating as lender, bookrunner and agent, we are not only providing crucial financing to the Industrial Bank, but also facilitating access to critical resources that will strengthen Nigerian businesses and drive sustainable development throughout the country ».
For his part, Olasupo Olusi, Director General of the BOI, declared: “ This historic syndicated facility of up to €2 billion demonstrates the confidence that global financial institutions place in the BOI’s performance and the central role it plays in Nigeria’s industrial and economic transformation. We are particularly grateful to Afreximbank for their significant participation and unwavering support both as lender and facilitator in this transaction. This funding will enable us to continue to finance essential projects, thereby promoting sustainable growth and development for all businesses in Nigeria. »
The facility comes with a first demand guarantee and is structured in two tranches. Tranche A is 85% guaranteed by the Africa Finance Corporation and 15% by the Central Bank of Nigeria (CBN) for principal and interest. Tranche B is 100% guaranteed by the AFC for principal and interest. The facility has a term of three years with quarterly repayments commencing after the first year.
TE/Sf/ac/APA
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