African Export-Import Bank (Afreximbank) has closed a US$1 billion facility for Bank of Industry, Nigeria’s state-owned development bank. The facility provides much needed support to Nigerian businesses across key sectors and is the largest international syndicated loan to a Nigerian financial institution since the onset of the pandemic-induced economic difficulties.
The transaction was jointly arranged with Credit Suisse and involved a syndicate of 27 investors.
Afreximbank, along with Credit Suisse, acted as Joint Coordinating Mandated Lead Arrangers (MLAs), Underwriters and Bookrunners. Afreximbank was the Facility Agent and Security Trustee. The Africa Finance Corporation, Rand Merchant Bank, SMBC, and the Export Import Bank of China also joined the deal as Mandated Lead Arrangers and Bookrunners.
This transaction follows a previous EUR 1 billion syndicated facility for Bank of Industry, which closed in March 2020.
Given the current adverse market conditions, the transaction constitutes a significant achievement for the parties involved. Importantly, the deal demonstrates the capacity of financial institutions to continue their vital activities during the pandemic and their positive attitude to African risks. The US$750mn underwriting provided by Afreximbank and Credit Suisse, which provided the Bank of Industry with certainty of funds, distinguishes this transaction as amongst the few debt financings to be underwritten since the onset of the COVID-19 pandemic.