Nigeria’s largest and oldest development finance institution (DFI), Bank of Industry (BoI), at the weekend raised 700 million euros in a major push to increase lending across segments of businesses and deepen national economic growth.
BoI issued a Euro 700 million Eurobond by way of 144A/RegS Senior Note Participation Notes, irrevocably and unconditionally guaranteed by the Federal Government . The notes will be listed on the London Stock Exchange.
The BoI issue was the first to be issued by an African national DFI and it was oversubscribed by 40 per cent as the bank raised 700 million euros as against expected 500 million euros book comprising high-quality buy-and-hold international investors across the United Kingdom (UK), Continental Europe, and the United States.
The BoI issue is the first by the institution and also set landmarks with the provision of the sovereign’s first Eurobond guarantee, as well as the first Euro-denominated transaction from Nigeria, creating a benchmark for other prospective issuers from the region.
The notes were rated B2 (Stable outlook) and B (Stable outlook) by Moody’s and Fitch. Rand Merchant Bank was the global coordinator and active book-runner for the transaction alongside other banks.
Managing Director, BoI, Mr. Olukayode Pitan, said the issuance aligned with Agenda 2050 and Nigeria’s National Development Plan 2025.
“Agenda 2050 is Nigeria’s long-term national development plan targeted at ensuring sustained national development, as well as support Nigeria’s regional and global strategic interests. The objectives of the agenda are to lift 100 million Nigerians out of poverty in 10 years, sustain national development and support regional and global strategic interests,” Pitan said.
BoI has a vision of transforming Nigeria’s industrial sector by providing financial and business advisory services for the establishment of large, medium, small and micro enterprises, as well as for the modernisation of existing businesses.
By last November, BoI has total assets of $4.3 billion and has more than 60 years of developmental track record. BoI supports projects with potential developmental impact and has supported three million enterprises and created seven million jobs since 2015. The bank has also focused on emerging sectors that are typically underserved by other financial institutions such as the youth segment, female-owned businesses, renewable energy and the entertainment industry.
Head of Investment Banking, RMB West Africa; Chidi Iwuchukwu said it was extremely satisfying to work closely with BOI to bring to fruition to their developmental objectives to create jobs and enable growth and sustainability for businesses in different sectors of Nigeria’s economy.
Iwuchukwu said international issuance by West African clients has continued to grow adding that RMB is proud to have the opportunity to assist indigenous entity to access capital for growth, globally.
Debt Capital Market Transactor, RMB, Suliyat Adeleke said the transaction was a landmark in any respects.
“As a debt capital market banker pursuing opportunities in Nigeria for a number of years, the success of the transaction is very fulfilling. Being Nigerian-British, I am ecstatic at the opportunity to be of service to one of my countries. As a member of the Nigerian female youth in the diaspora, I am excited about this transaction and feel personally vested in BOI’s success, as empowerment of Nigerian youths and women is a core part of BOI’s developmental mandate. I am also proud of BOI’s efforts and wish the institution success in achieving its vision” Adeleke said.