BOI CONCLUDES US$1,000,000,000.00 SYNDICATED TERM LOAN IN THE INTERNATIONAL MARKET
In line with the focus of President Muhammadu Buhari’s administration to revitalize Nigeria’s industrial sector and create 10 million jobs by leveraging the Nigeria Industrial Revolution Plan and the Economic Recovery and Growth Plan, the Bank of Industry (BOI) has just successfully concluded a landmark US$1 Billion loan syndication transaction. The transaction is aimed at further improving the capacity of the bank to continue to effectively support Micro, Small, Medium and Large enterprises (across key sectors) of the Nigerian economy with affordable loans of medium to long-term tenor, alongside moratorium benefits.
This transaction marks the third major international debt syndication deal successfully concluded by BOI within the last 3 years. In 2018, the bank raised the sum of US$750 million (Arranged by African Export-Import Bank “Afreximbank”) which has been fully repaid, and in March this year, concluded a €1 billion loan deal (Lead arranged by Afreximbank, Credit Suisse, Rand Merchant Bank and Sumitomo Mitsui Banking Corporation Europe Limited (SMBC).
Afreximbank and Credit Suisse acted as Co-ordinating Mandated Lead Arrangers, Underwriters, and Bookrunners of the transaction. Africa Finance Corporation, First Rand (Rand Merchant Bank) and Sumitomo Mitsui Banking Corporation subsequently joined as Mandated Lead Arrangers and Bookrunners, while the Export-Import Bank of China joined as a Mandated Lead Arranger. Afreximbank acted as the Facility Agent and Security Trustee for the deal. We are pleased to report that 28 international financial institutions and funds participated in this transaction, which was initially launched at US$750m, but upsized to US$1bn due to over-subscription.
Key factors that led to the success of this deal despite the challenges presented by the COVID-19 pandemic include amongst others, the impressive credit ratings of the bank (long term issuer default rating of B with stable outlook from Fitch, long term issuer rating of B2 from Moody’s and Aa from Agusto), its ISO certifications in both Quality Management Systems and Information Security, as well as the strong strategic partnership that the bank has developed with the Nigerian commercial banks, who patriotically continue to provide credit enhancements and de-risking tools to BOI customers.
Of particular and special note is the support of our owners (the Federal Ministry of Finance Incorporated and the Central Bank of Nigeria), the Federal Ministry of Finance, Budget and National Planning and our supervising ministry, the Federal Ministry of Industry, Trade and Investment. The Governor of the Central Bank of Nigeria and his Committee of Governors supported BOI by providing a full guarantee for the facility and a 100% currency swap to mitigate the foreign exchange rate risk.
The facility will be disbursed in Naira at single digit interest rates to borrowers with bankable projects. Between 2015 and October 2020, the Bank of Industry with the support of its various stakeholders disbursed over ₦945 billion to 3,013,087 enterprises, thus creating over 6.87 million estimated direct and indirect jobs.
With the successful conclusion of this deal, the Board and management of Bank of Industry is confident that the bank is now better positioned to catalyze domestic production and facilitate job creation on a transformational scale, enhance local industry competitiveness, attract domestic and foreign investments, integrate our local industries into domestic, regional and global value chains, grow our export earnings and positively impact the overall economic development of Nigeria in line with its mandate and especially in light of the planned commencement of the African Continental Free Trade Agreement (AfCFTA) in January 2021.
BOI AND AFD JOIN FORCES TO FIGHT CLIMATE CHANGE IN NIGERIA
August 23rd, 2022 Lagos, Nigeria – The Bank of Industry (BOI) and the French Development Agency (AFD) are pleased to announce that they built a partnership for a €100mn credit-line for the expansion of green finance in Nigeria.
The transaction was approved by AFD under its Transforming Financial Systems for Climate (TFSC) Program with the Green Climate Fund (GCF). The TFSC is a USD650mn-Program developed in 17 countries for 100% climate investment projects.
The credit facility will focus on financing investments that contribute to climate change mitigation or adaptation, specifically projects focused on renewable energy, low carbon and efficient energy generation, climate smart agriculture technologies, clean urban transportation and others.
“This is the beginning of a long-term mutually beneficial relationship and a significant step for BOI as we scale up our green-lending capacity. Given the serious threat that climate change poses to equitable and sustainable development in Nigeria. It is critical for us at BOI to take the lead in mobilizing capital for green and sustainable investment” said Mr. Olukayode Pitan, Managing Director/Chief Executive Officer, Bank of Industry, at the credit agreement signing ceremony which took place at the BOI head office in Lagos.
Mr. Xavier Muron, Country director for AFD, highlighted the importance of such a project in the framework of the fight against climate change globally. He added that this new credit line is a key milestone towards the achievement of the Paris Agreement. This Programme is timely since Nigeria is looking forward launching its Energy Transition Plan.
The financing package will also include a €2.5mn grant facility dedicated to a technical assistance programme aimed at mainstreaming Climate Finance within BOI’s strategy and operations. It will support capacity building for BOI and its customers, thereby providing tools for effective identification and development of eligible bankable climate-related projects as well as improving the readiness of the bank’s customers to implement green practices in their operations.
This transaction also highlights both AFD’s and BOI’s longstanding commitment to achieving the UN’s Sustainable Development Goals (SDGs). BOI operates under a robust Environment and Social Governance (ESG) framework that has been integrated into its operations with a monitoring and reporting system.
BOI also leverages on a global network of partners to stay at the forefront of sustainable development. In addition to its active role in the UN Global Compact, BOI is also a member of the UN Environment Programme Finance Initiative (UNEP-FI) and a signatory to UNEP-FI’s Principles for Responsible Banking. Recently, it joined the World Economic Forum’s Mobilizing Investment for Clean Energy in Emerging Economies (MICEE) Initiative.
Mr. Pitan acknowledged the dedication of AFD and its strategic partners to ensure the consummation of this deal: “This is the first time we have worked with AFD, and we were impressed by how the AFD invested significant time and effort to structure the facility to our specific requirements and operating model. This is a strong foundation for a long-term partnership.”
– Ends –
About Bank of Industry: The Bank of Industry (BOI) is Nigeria’s foremost and oldest Development Finance Institution and has been in operation for over 60 years: initially incorporated in 1959 as Investment Company of Nigeria (ICON), it became BOI in 2001.BOI’s mission is to transform Nigeria’s industrial sector by providing financial and advisory support services to enterprises. BOI promotes financial inclusion through long-term financing and counter-cyclical loans diversified across industries such as agro-processing, gender businesses and renewable energy, among others. As BOI is not a deposit money Bank, it has to frequently engage in capital raising activities to sustain its capacity to continue supporting its customers across key sectors and segments of the Nigerian economy.
BOI has raised a total of $5bn from the international financial market in the last five years. This includes the just-concluded landmark €1bn guaranteed Senior loan facility in August 2022. In the last 6 years, the Bank has disbursed over $3.6bn to over 4.2mn enterprises which has facilitated the creation of over 9mn direct and indirect jobs, thereby advancing sustainable development. BOI holds a National Long-Term Rating of ‘AAA (nga)’ and Long-Term Issuer Default Rating of ‘B’ with a stable outlook from Fitch Ratings; and an ‘Aa3.ng/NG-1’ national scale issuer rating and a ‘B2’corporate family rating (CFR) from Moody’s.
For more information, visit https://www.boi.ng
About AFD: The Agence Française de Développement (AFD – French Development Agency) funds, supports, and accelerates the transitions to a fairer and more sustainable world – aligned on the Sustainable Development Goals. Focusing on climate, biodiversity, peace, education, urban development, health and governance, our teams carry out more than 4,000 projects in France’s overseas departments and territories and another 115 countries. In this way, we contribute to the commitment of France and French people to support the sustainable development goals.
AFD is present in Nigeria since 2008 with its main office based in Abuja along with an additional branch in Lagos. Its main sectors of intervention in the country are energy, high education, agriculture, water supply as well as clean transportation.
For more information, visit https://www.afd.fr/en.
Bank of Industry Appoints GOPA Intec for Climate Finance Technical Assistance Program
The Bank of Industry(BOI) has appointed GOPA Intec as the technical consultant under the “Transforming Financial Systems for Climate” (TFSC) Program, funded by a €2.5m grant from the Agence Française de Développement (AFD) and Green Climate Fund (GCF).
The Technical Assistance Program is a critical step in supporting Nigeria’s transition to a sustainable and climate-resilient economy. The Program will develop the capacities of BOI and key financial sector players to manage climate finance, design climate-friendly financial products, and apply global best practices for impactful results in Nigeria.
The program also provides a critical support to enhancing gender financing for women owned or led businesses by creating new strategic partnerships.
Over the next four years, GOPA Intec will provide strategic technical assistance to BOI, helping to mobilize climate finance for key renewable energy, energy efficiency, and climate-friendly projects across Nigeria in both mitigation and adaptation type projects.
The engagement of GOPA Intec as the technical consultant demonstrates Nigeria’s ongoing commitment to advancing sustainable development and green economic growth.
The Transforming Financial Systems for Climate (TFSC) program is part of a global €653 million effort of the Agence Française de Développement Group and the Green Climate Fund to develop a market for climate finance in 17 countries across Africa and Latin America.
The TFSC Program has selected the Bank of Industry to anchor the Climate Finance Strategy, and Environmental and Social Risk Management System implementation for Nigeria.
The specific objectives of TFSC in Nigeria are to:
- Support Nigerian financial institutions in adopting a climate finance strategy and tools.
- Provide support for the promotion of green sustainable growth in different sectors, leveraging both public and private financing.
- Consolidate the application of market-based instruments for environmental/climate-smart investments.
- Improve the competitiveness and growth of cleaner business opportunities that lead to job creation.
- Develop new guiding principles and partnerships with international endowments and foundations to scale financing to women businesses.
- Implement training and capacity building programs for banks, clients and key partners to enhance support for climate investments in Nigeria.
BOI ACHIEVES 142.5% SUBSCRIPTION IN THE SENIOR PHASE OF €1 BILLION GLOBAL LOAN SYNDICATION WITH MECHANISM FOR INCREASE
The Bank of Industry (BOI) has received €1.425billion from the senior phase of its global loan syndication – representing a 42.5 percent oversubscription from International financial markets.
This is the senior phase of another landmark transaction for Bank of Industry tapping the syndicated loan market. The Facility includes a fully guaranteed and a partially guaranteed tranche by Africa Finance Corporation. Previously Bank of Industry had raised EUR 1,000,000,000 via a Term Loan syndicated facility in July 2022, which has been successfully repaid in July 2024. The performance of the syndication is a mark of confidence in the bank and indeed in the Nigerian economy by foreign investors who perceive a bright future for the country.
The proceeds of the loan will help finance a growing demand for BoI funds across the country. According to the MD/CEO of the Bank Dr Olasupo Olusi, “this is the largest syndication in the Bank’s history and is testament to the hard work and dedication of the management of BoI to ensuring that much needed low interest and longer tenured funds are available to Nigeria’s growing private sector in line with the vision of His Excellency President Bola Ahmed Tinubu. We are grateful for the support received from the CBN and other agencies of government.” Olusi assured that the Bank of Industry under his leadership will continue to work with global development financial institutions to ensure better loan terms for Nigeria’s private enterprises.
Bank of Industry Limited appointed Africa Finance Corporation and Standard Chartered Bank as the Global Coordinators of a EUR1bn syndicated term loan facility (with accordion of another EUR1bn). Africa Finance Corporation, African Export-Import Bank, First Abu Dhabi Bank PJSC, FirstRand Bank Limited (London Branch), acting through its Rand Merchant Bank division, Mashreqbank psc, SMBC Bank International plc, and Standard Chartered Bank were appointed as the Initial Mandated Lead Arrangers and Bookrunners. Absa Bank Limited (acting through its Corporate and Investment Banking division) and its affiliates and Export-Import Bank of India London Branch have also joined the Facility as Initial Mandated Lead Arrangers.
BOI is looking forward to a successful conclusion of the ongoing general phase, given the level of interest expressed by the local and international banks and investors.
President Tinubu Appoints New Executive Directors at Bank of Industry
President Bola Ahmed Tinubu has appointed Mr. Rotimi Akinde and Mrs. Ifeoma Uz’Okpala as Executive Director, Corporate Finance & Risk Management and Executive Director, Large Enterprises Directorate respectively to the Bank of Industry (BOI) effective, Monday, August 26, 2024.
Rotimi Akinde is a finance professional with over 20 years Investment and Corporate Banking experience and an extensive track record covering capital raising (Debt, Equities and Hybrids) as well as Corporate Finance (Mergers & Acquisitions, Privatization Advisory and Project Finance).
Prior to joining the Bank of Industry, he was an Associate Partner, Project & Corporate Finance at the Infrastructure Delivery International (IDI), where he worked on the UKNIAF programme and promoted green finance as well as structured debt solutions for sub-nationals.
He also worked previously as the Corporate Finance Advisor at Nigeria Infrastructure Advisory Facility (‘NIAF’), providing financing initiatives, modelling and funding structures on infrastructure.
He served within Corporate Banking as the Group Head & Assistant General Manager, Multinationals at UBA Plc, prior to which he was Vice President, Corporate Finance & Advisory at UBA Global Markets (‘now United Capital’).
He was a Privatization Adviser & Head, Oil & Gas Team at the Bureau of Public Enterprises (BPE), where he closed on the divestiture and sale of the Federal Government’s equity interest in 11 Oil Services Companies and achieved the sale of all the Federal Government’s LPG assets.
He was an Assistant Manager in Leadbank Plc, within both the Investment and Corporate Banking Groups.
Prior to this he had worked in the financial sector in the United Kingdom as an Investment Analyst with Barclays Funds, London and a stint as an Analyst with Merrill Lynch Investment Managers, London.
Rotimi holds a Bachelors degree in Economics from the Obafemi Awolowo University, Ile-Ife; earned a Masters Degree in International Securities, Investment & Banking from the University of Reading, UK and holds an Executive MBA from INSEAD.
Mrs. Ifeoma Uz’Okpala joined BOI in September 2014 as Group Head, Large Enterprises Credit and later served as the Chief Risk Officer of the Bank before her appointment.
As Chief Risk Officer of the Bank, she played a crucial role in managing and mitigating risks associated with the bank’s operations, while also providing Environmental, Social, and Governance (ESG) risk support. She offered invaluable ESG support within transactions and provided the roadmap for attracting impact investments.
Uz’Okpala is a seasoned Credit and Risk Management Professional, with a career spanning over 30 years in the financial sector.
She commenced her career at International Merchant Bank and progressed through key roles at MBC International, First Bank, Stanbic Bank, and UBA. Her versatile expertise includes Internal Audit, Corporate Finance, Credit Evaluation and Origination, Foreign Operations, and Risk Management.
She is an alumna of the University of Nigeria, where she attained a BSc. In Accountancy and a graduate of the prestigious Lagos Business School.
Uz’Okpala is a Fellow of the Institute of Chartered Accountants of Nigeria (FCA), an Honourary Senior Member (HCIB) of the Chartered Institute of Bankers of Nigeria and Member of the Chartered Risk Management Institute.
iDICE IsDB Subsidiary Grant Agreement Signing Ceremony
The Honorable Minister of Finance and Coordinating Minister of the economy, Mr. Wale Edun (L) and the MD/CEO of the Bank of Industry (BOI), Dr. Olasupo Olusi (R) during the signing ceremony of the iDice programme Subsidiary Grant Agreement for the Islamic Development Bank held recently in Abuja.
The Federal Government of Nigeria initiated Investment in the Digital and Creative Enterprises (iDICE) program in a bid to build capacity and create more sustainable jobs in the technology and creative ecosystems. The primary aim of iDICE is to build capacity and upskill Nigerian youth (from ages 15-35), in technology and creativity to increase their employability, foster innovation, and support the emergence of more entrepreneurs in these ecosystems within the five-year lifespan of this programme.
The iDICE program is intended to intervene in three (3) key areas: Skills and Enterprise Development, in which youths will be trained in in-demand technology and creative skills, as well as to build a community of highly skilled talent and connect them to jobs or support them in starting innovative enterprises. The second program component provides patient funding in the form of equity and debt to startups, with a focus on funding gaps in the technology and creative sectors through equity/quasi-equity capital investment. iDICE’s third intervention will provide an Enabling Environment by developing, promoting, and implementing policies, laws, and programs that encourage ease of doing business in technology and creative ecosystems. These components/intervention areas of the iDICE program are designed to address ecosystem challenges and ensure the growth of the technology and creative sectors.
One of the requirements for disbursement of the iDICE program funds is the signing of a Subsidiary Grant Agreement with each of the program financiers. This agreement has been signed for the African Development Bank (AfDB) and the Agence Française de Développement (AFD). Yesterday, the Honorable Minister of Finance, Mr. Wale Edun, and the Managing Director of the Bank of Industry (BOI), Dr. Supo Olusi, signed the Subsidiary Grant Agreement for the Islamic Development Bank. The signing of this subsidiary agreement is a conditions precedent to first disbursement for the Islamic Development Bank’s funding.
During the signing ceremony, the Honourable Minister of Finance reiterated the objectives of the iDICE programme, emphasizing the jobs that will be created for youths, the diversity that iDICE will bring to the Nigerian economy, and his trust in the Bank of Industry’s as the executing agency in delivering on the programme.
BOI LAUNCHES PALLIATIVE FOOD PROGRAMME
The Federal Ministry of Industry, Trade and Investment has unveiled the Bank of Industry’s (BoI’s) palliative food programme in its bid to cushion the effect of challenges currently being faced by Nigerians.
The Honourable Minister, Dr Doris Nkiruka Uzoka-Anite, at the launch of the programme at BoI’s head office in Lagos, said the move is coming on the heels of the present administration’s effort to support the vulnerable.
The Minister stated that as a responsive government, it has announced a number of programmes aimed at ameliorating the effect of the fuel subsidy removal on Nigerians.
She pledged the government’s support for industries to enhance local production while also ensuring food security.
In her words, “The launch of the BOI Palliative programme is a strong commitment to food security. We are seeking ways to address the food insecurity issues currently being faced in the country. The federal government is aware of the skyrocketing food prices and is working with relevant stakeholders in the food value chain to address this challenge.”
Also speaking, the Managing Director, BOI, Dr. Olasupo Olusi, said the development finance institution is working closely with the federal government to ensure that the palliative gets to the targeted beneficiaries across the 36 States including the Federal Capital Territory (FCT) starting in Lagos and Abuja.
The Bank will engage its food processing customers for the purchase of food items at affordable prices while also working with all the State governors for the sharing/donation of the purchased food items.
According to him, the food palliative programme is a clear demonstration of the Bank’s commitment to the Renewed Hope Agenda of the current administration.
It will be recalled that the bank recently launched the Presidential Conditional Grant Scheme (PCGS) which provides N50,000 grants to qualifying small businesses across various sectors nationwide.
Federal Government Presidential Conditional Grant Scheme (PCGS) Rolls Out To Empower Nano Businesses Across Nigeria
The Federal Government has rolled out the Presidential Conditional Grant Scheme (PCGS) to empower Nano businesses as part of the Presidential Palliative Program.
Beginning on March 9, 2024, the scheme offers financial grants, without repayment obligations, to eligible small business owners operating in various sectors such as trading, food services, ICT, transportation, creatives, and artisans. The PCGS targets 70% women and youth, 10% people with disabilities, and 5% senior citizens, with the remaining 15% distributed to other demographics.
By focusing on the often overlooked group of business owners, the program seeks to unlock the potential of Nigeria’s burgeoning entrepreneurial ecosystem and drive sustainable economic development at the grassroots level.
The N50,000.00 (Fifty Thousand Naira) grant per beneficiary paid directly to beneficiaries’ accounts will reach one million small businesses in the 774 local government areas (LGAs) and the six council areas in the Federal Capital Territory (FCT). With a target of 1,000,000 beneficiaries in every LGA and the FCT, the program has the potential to impact communities nationwide significantly.
Beneficiaries of the initiative have been selected through a rigorous process that includes the verification of each business owner through their National Identification Number (NIN) and Bank Verification Number (BVN).
The successful applicants met specific criteria, including owning a small business with progressive economic potential, a willingness to grow, and engage at least one additional staff member when necessary. Applicants also provided proof of residential/business address and relevant personal and bank account information before the December 18, 2023 deadline.
The Presidential Conditional Grant Scheme underscores the government’s commitment to supporting small-scale entrepreneurs and driving inclusive economic growth. With a strong emphasis on inclusivity and empowerment, the PCGS is poised to make a tangible impact on the lives of small business owners and their communities across Nigeria.
The initiative is implemented by the Federal Ministry of Industry, Trade and Investment with the Bank of Industry as the Executing Agency.
For more information about the Presidential Conditional Grant Scheme (PCGS), please visit the official website [https://grant.fedgrantandloan.gov.ng/].
BOI SET TO DISBURSE N200BN TO SUPPORT BUSINESSES ACROSS THE COUNTRY
The Federal Government of Nigeria through the Federal Ministry of Industry, Trade, and Investment (FMITI), has established three funds totaling N200,000,000,000 (Two Hundred Billion Naira) to support businesses across Nigeria: The Presidential Conditional Grant Scheme (PCGS); The FGN MSME Intervention Fund; and the FGN Manufacturing Sector Fund. The Bank of Industry (BOI) has been appointed as the executing agency of the funds, vested with the responsibility for its day-to-day administration.
The Presidential Conditional Grant Scheme (PCGS), is a N50,000,000,000 (Fifty Billion Naira) grant scheme to support eligible Nano Business owners. The Grant will be disbursed to a minimum of 1,000 beneficiaries (especially Women and Youths) per Local Government Area (LGA) in the 774 LGAs across the Nation and the 6 (six) Council Areas in the FCT. The target nano businesses include: Traders, Food Vendors, ICT businesses, Transporters, Artisans, Creatives, among others. This is the grant component of the initiative, as beneficiaries are not required to pay back. To be eligible, beneficiaries must own a nano business and be willing to register a business name as their business grows, and be willing to engage at least one additional staff member if the business turnover increases; They must also be willing to provide proof of residential/business address in their Local Government Area, provide relevant personal and bank account information, including but not limited to Bank Verification Number (BVN) and National Identification Number (NIN) for verification of identity. The beneficiary must meet the application submission deadline for the scheme.
The FGN MSME Intervention Fund, is a N75,000,000,000 (Seventy-Five Billion Naira) fund, for Micro, Small and Medium Enterprises (MSMEs) in Nigeria. The fund would be used to support eligible micro, small and medium enterprises and serve as a cushion against the high cost of production, marketing and distribution of products arising mainly from infrastructure deficiencies and other ancillary factors involving MSMEs in Nigeria. Each beneficiary would receive a maximum of N1,000,000 (One Million Naira). The fund would be disbursed at an interest rate of 9% all-inclusive per annum, with a tenor of 3 years for equipment and working capital.
The FGN Manufacturing Sector Fund is a N75,000,000,000 (Seventy-Five Billion Naira) fund, that would be used to support eligible manufacturing companies and help cushion against the high and rising costs of production, marketing and distribution of products arising from infrastructural deficiencies and other ancillary factors affecting the manufacturing sector in Nigeria. Beneficiaries would receive up to N1billion (One Billion Naira), disbursed at an interest rate of 9% all-inclusive per annum, with a tenor of 5 years for term loans, and 1 year for working capital.
The MD/CEO, Bank of Industry, Dr. Olasupo Olusi, reiterated BOI’s commitment to the development of MSMEs as the bedrock of the economy, which is in line with His Excellency, President Bola Ahmed Tinubu’s Renewed Hope Agenda.