BOI obtains £1b facility and may increase it to boost economic productivity
By Jeph Ajobaju, Chief Copy Editor
Businesses big and small with “bankable transactions” are to be given a stronger helping hand with a £1 billion guaranteed senior loan facility just obtained by the Bank of Industry (BoI).
BoI said the money will be used to increase lending at affordable naira rates as part of a concerted effort by the government to increase productivity and grow the economy.
Investment banks (Initial Mandated Lead Arrangers) and underwriters for the senior phase of the transaction were led by the Africa Finance Corporation (AFC) and Standard Chartered Bank.
Other participants included AbsoBank Limited; FirstAbuDhabiBankPJSC; FirstRand Bank Limited, London; Moshreqbonk PSC, Nedbank Limited, London; and SMBCBank InternationalP.
BoI disclosed this in a statement which named African Export-Import Bank (Afreximbank) as the agent bank for the transaction.
The bank said it has an option to increase the facility to £1.5 billion after the general syndication which a syndicate of institutions has shown interest in.
“The proceeds of this deal, like in our previous ones, will be utilised to provide much needed medium to long term finance to Nigerian Micro Small and Medium Enterprises (MSMEs) and large enterprises with bankable transactions at affordable Naira interest rates,” BOI Managing Director Kayode Pitan explained.
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BOI disburses N1.2tr to 4m enterprises
BOI said between 2015 and 2021 it disbursed more than N1.2 trillion to over four million enterprises thereby creating over nine million direct and indirect jobs, according to reporting Vanguard.
The bank expressed gratitude to its majority shareholders, including the Central Bank of Nigeria (CBN) and its Committee of Governors.
It also expressed ‘‘deep appreciation to the Federal Ministry of Finance, Budget and National Planning and our supervising ministry, the Federal Ministry of Industry, Trade and Investment.’’