The Bank of Industry (BOI) has issued a €700 million Eurobond to fund the expansion of enterprises in Nigeria.
BOI is the first African national development financing institution (DFI) to issue a public Eurobond, according to a statement from Rand Merchant Bank (RMB), the global coordinator and active book-runner on the transaction.
According to the statement, BOI issued the €700 million Eurobond using 144A/RegS senior note participation motes, which were irrevocably and unconditionally guaranteed by the federal government of Nigeria.
It further stated that the BOI’s vision is to revolutionize Nigeria’s industrial sector by offering financial and business advising services for the development of big, medium, and small organizations, as well as the modernization of existing businesses.
“This transaction represents the institution’s (BOI) first Eurobond, the provision of the sovereign’s first Eurobond guarantee, and the first Euro-denominated transaction from Nigeria, creating a benchmark for other prospective issuers from the region,” according to the release.
The five-year euro-denominated senior note instrument was issued at a yield of 7.5 percent, according to the statement.
“BOI’s plan was to raise up to EUR500 million, but we successfully raised EUR700 million thanks to a 1.5 times oversubscribed order book comprised of high-quality buy-and-hold international investors,” according to the statement.
“The transaction was preceded by a three-day global virtual roadshow, which included a global investor call, primarily involving engagement with investors from the United Kingdom, Continental Europe, and the United States.”
“The notes will be listed on the London Stock Exchange and have Moody’s and Fitch ratings of B2 (Stable outlook) and B (Stable outlook), respectively.”
“RMB was appointed as the transaction’s global coordinator and active bookrunner alongside other banks, with RMB assisting the issuer to ensure that BOI’s unique credit story and developmental impact were best articulated to a diverse global investor base.”
The bond issuance, according to Olukayode Pitan, managing director of BOI, is in line with Agenda 2050 and Nigeria’s national development plan 2025.
“Agenda 2050 is Nigeria’s long-term national development plan, with the goal of ensuring sustained national development while also supporting Nigeria’s regional and global strategic interests.” “The agenda’s objectives are to lift 100 million Nigerians out of poverty in ten years, to sustain national development, and to support regional and global strategic interests,” he explained.
Chidi Iwuchukwu, head of investment banking at RMB West Africa, expressed joy in working with BOI to achieve the institution’s developmental goals of creating jobs and enabling growth and sustainability for businesses in various sectors of Nigeria’s economy.