AFC Completes €2bn Largest-ever Global Loan Syndication For BOI

Africa Finance Corporation (AFC) has announced that it spearheaded the process that led to a syndicated loan of up to €2 billion for the Bank of Industry (BOI), Nigeria’s largest and most impactful development finance institution.

The AFC, a multilateral finance institution for Africa’s economic development solutions in its announcement said it was the global coordinator, lead co-arranger, underwriter, bookrunner, and guarantor in the successful syndication of the facility.

“The transaction is a record global loan syndication for BOI, and marks the largest capital raise in its history, setting a new standard for developmental finance across Africa,” the AFC said in a statement.

The €2 billion facility was syndicated at two levels with an initial €1.43 billion. The AFC further headed a general syndication that raised an additional €447 million, totalling €1.9 billion. This represents an oversubscription of 87 per cent and is expected to grow to €2 billion.

The proceeds from this facility will be utilised for various corporate objectives, primarily to support trade and trade-related initiatives for qualified Nigerian businesses.

“This successful syndication is a significant milestone achievement, not only for BoI but for Africa’s financial landscape as a whole. We are proud to have played a central role in this historic global loan syndication, solidifying AFC’s position as a trusted bridge between global investors and infrastructure projects in Africa,” said executive board member and head of financial services at AFC, Banji Fehintola.

Fehintola extended appreciation to AFC’s joint coordinator and partner, Standard Chartered Bank, and other participating banks whose collective efforts contributed significantly to the outstanding success of the transaction.

“This financing, the sixth international capital raising for BOI, is the largest fundraising in our history and the largest syndication in the history of African development finance institutions. A key constant in achieving this success is the continued support of our international funding partners, including AFC. We are grateful for the unique role that AFC played to make this transaction a success,“ said Olasupo Olusi, managing director of BOI.

As part of the syndication, AFC leveraged its A3 (stable outlook) investment-grade rating, recently affirmed by Moody’s, to bring together an international consortium of financial institutions.

The transaction aligns with the Corporation’s mission to provide pragmatic solutions that close the continent’s infrastructure gap, accelerate industrialisation, and enhance Africa’s economic resilience against global economic challenges.

The facility was syndicated at two levels, the first level being with AFC, Standard Chartered Bank, African Export-Import Bank, First Abu Dhabi Bank PJSC, FirstRand Bank Limited, acting through its Rand Merchant Bank division (London Branch).

Others were Mashreqbank PSC, SMBC Bank International PLC, Absa Bank (Mauritius) Limited, Absa Bank Limited (acting through its Corporate and Investment Banking division) and Export-Import Bank of India London Branch acting as part of a senior syndicate.