Afreximbank Joins EUR 2 Billion Syndicated Loan Deal to Support Nigeria’s Bank of Industry

This deal marks a significant milestone in boosting Nigeria’s industrial, economic, and trade-related projects.

The African Export-Import Bank (Afreximbank) has partnered with a consortium of leading global financial institutions in London to sign a landmark EUR 2 billion syndicated term loan facility for Bank of Industry (BOI) Nigeria. This deal marks a significant milestone in boosting Nigeria’s industrial, economic, and trade-related projects.

As one of the Initial Mandated Lead Arrangers, Bookrunner, and Facility Agent, Afreximbank disbursed EUR 175 million of its participation in September 2024, split into two tranches:

• EUR 115 million under Tranche A
• EUR 60 million under Tranche B

The broader facility, structured into two tranches, will enable BOI to provide critical funding to eligible Nigerian corporates to finance trade, industrialization, and economic transformation projects, ultimately fostering sustainable growth and development in the country.

Highlighting the importance of this collaboration, Mr. Denys Denya, Senior Executive Vice President at Afreximbank, stated:

“This significant transaction underscores Afreximbank's commitment to supporting Nigeria's economic growth. By actively participating as lender, bookrunner, and agent, we are not only providing crucial financing to Bank of Industry but also facilitating access to critical resources that will empower Nigerian businesses and drive sustainable development across the country.”

Dr. Olasupo Olusi, Managing Director of Bank of Industry, emphasized the deal’s transformative potential:

“This landmark syndicated facility of up to EUR 2 billion is a testament to the confidence global financial institutions have in the Bank of Industry’s track record and its pivotal role in driving Nigeria’s industrial and economic transformation. We are particularly grateful for Afreximbank’s significant participation and unwavering support both as a lender and facilitator in this transaction. This funding will empower us to further finance critical projects, ultimately fostering sustainable growth and development for corporates across Nigeria.”

Facility Structure and Guarantees

The syndicated loan facility is backed by robust guarantees and structured into two distinct tranches to ensure comprehensive risk management:

Tranche A:

Guaranteed 85% by the Africa Finance Corporation (AFC)

Guaranteed 15% by the Central Bank of Nigeria (CBN) for both principal and interest.

Tranche B:

Fully (100%) guaranteed by the AFC for both principal and interest.

The facility carries a three-year tenor, with quarterly repayments scheduled to begin after the first year. This structure reflects the consortium's confidence in BOI’s operational integrity and Nigeria’s economic potential.

Driving Economic Growth Through Industrialization

The proceeds of this syndicated facility will serve as a catalyst for Nigeria’s industrial growth, trade, and innovation by providing tailored financing to corporate businesses engaged in:

Industrial Projects: Strengthening manufacturing, infrastructure, and industrial capacity.

Trade and Export Promotion: Facilitating trade-related initiatives to enhance Nigeria’s export competitiveness.

SME Empowerment: Supporting small and medium-sized enterprises (SMEs), the backbone of Nigeria’s economy.

Sustainable Development Initiatives: Financing environmentally conscious projects to promote long-term economic sustainability.

The facility also aligns with Nigeria’s broader strategy to drive job creation, industrial diversification, and economic resilience.

Afreximbank’s Role in Africa’s Economic Development

Afreximbank continues to play a pivotal role in advancing Africa’s economic ambitions. By participating in strategic financing initiatives such as the BOI syndicated loan, the Bank is actively contributing to:

Strengthening intra-African trade

Accelerating industrialization

Promoting sustainable economic development

This latest transaction demonstrates the power of collaboration among African and international financial institutions in unlocking resources that enable meaningful economic transformation.

A Testament to BOI’s Credibility

BOI, Nigeria’s leading development finance institution, has earned the confidence of global lenders due to its proven record of financing critical sectors, supporting innovation, and driving industrial development. This EUR 2 billion facility will empower BOI to scale its operations, enabling businesses across Nigeria to access critical funding for growth and expansion.

Looking Ahead

The successful financial closure of this facility sets a precedent for future collaborations and highlights the growing confidence of international lenders in Nigeria’s economy. As BOI begins disbursement to eligible businesses, the ripple effects of this funding are expected to accelerate:

Job creation across multiple industries.

Infrastructure growth to support industrialization.

Boosted trade capacity for both local and export markets.

This transaction signifies a major step toward economic self-reliance and positions Nigeria as a key player in Africa’s economic renaissance.

“Through initiatives like this, Afreximbank and its partners are reaffirming their commitment to building a prosperous, industrialized Africa,” concluded Mr. Denya.

The partnership between Afreximbank, BOI, and other global lenders underscores the importance of innovative financing solutions in achieving Nigeria’s and Africa’s economic aspirations.