Download logoAfrican Export-Import Bank (Afreximbank) (www.Afreximbank.com) recently joined a consortium of financial institutions in London to sign a landmark syndicated term loan facility for Bank of Industry (BOI) Nigeria of up to EUR 2 billion.
Afreximbank, acted as one of the Initial Mandated Lead Arrangers, Bookrunner and Facility Agent. The Bank disbursed its participation amount of EUR 175 million in September 2024 in two tranches of EUR 115 million in Tranche A and EUR 60 million under Tranche B.
Afreximbank was also involved in the processes leading to financial close and disbursement of up to EUR 2 billion by all the lenders, including the early bird syndication in August 2024 as the Facility Agent. BOI is expected to use the proceeds of the facility to finance trade and trade related projects of eligible corporates in Nigeria.
"This significant transaction underscores Afreximbank's commitment to supporting Nigeria's economic growth," said Mr. Denys Denya, Senior Executive Vice President at Afreximbank. "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, stated: “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.”
The facility is backed by a first demand guarantee and is structured into two tranches. Tranche A is guaranteed 85% by the Africa Finance Corporation and 15% by the Central Bank of Nigeria (CBN) for both principal and interest. Tranche B is 100% guaranteed by the AFC for both principal and interest. The facility has a three-year tenor with quarterly repayments commencing after the first year.
Distributed by APO Group on behalf of Afreximbank.
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Vincent Musumba
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Email: press@afreximbank.com
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About Afreximbank:
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa's trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA. At the end of December 2023, Afreximbank's total assets and contingencies stood at over US$37.3 billion, and its shareholder funds amounted to US$6.1 billion. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody's (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure (together, "the Group"). The Bank is headquartered in Cairo, Egypt.
For more information, visit: www.Afreximbank.com
