Afreximbank and Capital Markets Division acts as joint Global Coordinator on BOI’s EUR 700m 5-yr Senior Eurobond Issuance

The Advisory & Capital Markets (“ACMA”) Division of African Export-Import Bank (“Afreximbank” or the “Bank”) acted as Joint Global Coordinator and Active Bookrunner to Nigeria’s Bank of Industry (“BOI” or the “Issuer”) on its EUR 700 million 144A/RegS 5-year Senior Eurobond Issuance. The bonds are irrevocably and unconditionally guaranteed by the Federal Government of Nigeria and marks BOI’s debut into international capital markets in order to diversify its funding base. BOI is rated B2 (Stable) by Moody’s and B (Stable) by Fitch. The bond matures on the 16th of February 2027 and was issued with a yield and coupon of 7.500% with interest payable annually in arrears.

BOI is the oldest and largest Development Finance Institution (DFI) in Nigeria and is owned by the Ministry of Finance and Central Bank of Nigeria.  BOI raised EUR 700 million against an orderbook that was 1.5x oversubscribed, the transaction witnessed significant demand from high-quality international investors from Europe, UK, USA, Middle East and Africa. BOI will use bond proceeds to fund general corporate purposes, thus expanding its developmental impact to support the Nigerian real sectors including SMEs.

Afreximbank acted as Joint Global Coordinator and Active Bookrunner supporting BOI throughout the inaugural issuance process. This is the second time Afreximbank has acted as a global coordinator in the debt capital markets in recent months, reaffirming its capability to facilitate access of African clients to new and diverse funding sources.

Commenting on the transaction, Afreximbank’s President, Prof. Benedict Oramah, noted that: “Afreximbank is pleased to start the year on a strong note supporting Nigeria’s oldest and largest DFI on this landmark transaction. The achievement on this issuance demonstrates the confidence of international investors in Nigeria and Africa as a whole. This latest transaction takes us to USD 2.4 billion of financing advised and arranged by Afreximbank in the international capital markets over the last one year alone, thus demonstrating Afreximbank’s commitment to supporting economic growth in its member countries by capitalizing on global markets.”

Olukayode Pitan, Managing Director and Chief Executive Officer at BOI, said that he was pleased to have a sister African institution like Afreximbank play a key role in this landmark transaction. He added that the issuance is aligned with Nigeria’s Agenda 2050 and National Development Plan 2025: “BOI has been in operation for over 60 years with a significant understanding of the Nigerian banking sector. Our developmental mandate is guided by the National Development Plan 2025 and primary drivers of our strategy is to provide lower interest rates, job/value creation, women & youth empowerment, creative industry and sustainability, to name a few.”