In a stunning feat that underscores Africa’s rising potential in global finance, the Africa Finance Corporation (AFC) has successfully coordinated a landmark €2 billion loan syndication for the Bank of Industry (BOI), Nigeria’s largest development finance institution. This is no ordinary transaction—it represents the largest fundraising in BOI’s history and sets a new benchmark for development finance across Africa.
With AFC acting as Global Coordinator, Lead Co-Arranger, Underwriter, Bookrunner, and Guarantor, the achievement signals growing international confidence in Africa’s financial institutions and their ability to deliver transformative results.
Why This Deal Matters for Africa
This historic deal is more than just a financial transaction; it is a game-changer for Nigeria and the continent. The €2 billion facility is designed to support trade financing and trade-related projects, empowering Nigerian businesses and boosting the broader economy.
At a time when global credit markets are strained, this oversubscribed syndication demonstrates the resilience and trustworthiness of African financial institutions like BOI and AFC. The transaction highlights Africa’s capacity to attract international capital even under challenging economic conditions.
The Syndication Process: A Masterclass in Financial Coordination
Two-Tier Syndication
The syndication process was executed in two phases:
- Senior Syndicate: An initial €1.43 billion was raised through a collaboration involving some of the world’s top financial institutions, including Standard Chartered Bank, African Export-Import Bank, First Abu Dhabi Bank, FirstRand Bank, and others.
- General Syndication: Following the senior syndicate’s success, an additional €447 million was raised, bringing the total to €1.9 billion—an 87% oversubscription. This amount is expected to grow further to €2 billion, cementing its status as a milestone achievement in African finance.
What This Means for Nigeria and BOI
Fueling Economic Growth
The proceeds of the loan will enable BOI to finance trade-related projects, helping eligible Nigerian corporates scale operations and enhance productivity. This aligns with BOI’s mission to drive industrialization, create jobs, and reduce poverty across Nigeria.
Reaffirming Market Confidence
The successful syndication, led by AFC, reflects strong market confidence in BOI’s stability and ability to deliver results. For Nigeria, it’s a signal to the world that the country’s financial sector is robust, innovative, and capable of leading complex global financial transactions.
AFC’s Role: Connecting Africa to the World
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The AFC brought its financial expertise, A3 Moody’s investment-grade rating, and unparalleled market access to the table. Acting as the bridge between international investors and African opportunities, the AFC’s leadership ensured the success of this syndication.
“This is not just a victory for BOI but a monumental step for Africa’s financial landscape. It showcases our ability to deliver pragmatic solutions to close the continent’s infrastructure gap and enhance economic resilience,” said Banji Fehintola, Executive Board Member and Head of Financial Services at AFC.
BOI’s Vision: A Catalyst for Transformation
BOI’s Managing Director, Dr. Olasupo Olusi, described the deal as the largest fundraising in the bank’s history and a testament to its strong partnerships with international funding entities.
“This financing marks a turning point not just for BOI but for African development finance institutions. With this capital, we can further our mission of supporting businesses and industrial growth in Nigeria,” Olusi stated.
AFC and BOI: Pioneering a New Era in Development Finance
Innovative Collaboration
The collaboration between AFC and BOI represents the power of African financial institutions to innovate and work together to achieve groundbreaking results.
Scaling Industrialization
By enabling trade financing and supporting infrastructure development, the facility will play a pivotal role in Nigeria’s industrialization agenda, driving the creation of jobs and long-term economic growth.
Setting a New Benchmark for African Finance
The success of this transaction is a beacon of what is possible in African development finance. By raising €2 billion under challenging global conditions, AFC and BOI have set a new standard for financial innovation and collaboration.
For Nigeria, this deal is a testament to the strength of its financial institutions, the promise of its economy, and the potential of its people. For Africa, it is a reminder that the continent’s time to lead is now.
The Wow Factor
This isn’t just about numbers—it’s about rewriting the narrative of African finance. At a time when global markets are cautious, Africa is emerging as a destination for bold, innovative, and impactful financial deals.
With €2 billion secured and global investors watching closely, AFC and BOI are proving that Africa is not just part of the global economy—it’s shaping its future.
