The International Debt Capital Markets (DCM) team at Rand Merchant Bank has assisted Bank of Industry (BOI), Nigeria’s largest, oldest, and most profitable Development Finance Institution (DFI), in issuing a EUR700 million Eurobond via 144A/RegS Senior Note Participation Notes, which are guaranteed irrevocably and unconditionally by the Federal Government of Nigeria.

BOI, the first African DFI to issue a public Eurobond, aims to modernize Nigeria’s industrial sector by offering financial and business advising services for the development of big, medium, and small firms, as well as the modernization of existing businesses.

Nigeria’s National Development Plan 2025 and Agenda 2050, which aim to bring a hundred million Nigerians out of poverty in ten years, guide BOI’s mandate. The institution’s mission is to provide funding for the growth of micro, small, and big businesses. This transaction marks the institution’s first Eurobond, the sovereign’s first Eurobond guarantee, and Nigeria’s first Euro-denominated transaction, setting a precedent for other potential issuers in the region.

The Federal Government of Nigeria guarantees the five-year, Euro-denominated senior note instrument, which has a yield of 7.500 percent. BOI expected to raise up to EUR500 million but ended up raising EUR700 million thanks to a 1.5-times oversubscribed order book of high-quality buy-and-hold overseas investors. The deal was preceded by a three-day worldwide virtual roadshow, which included a global investor call and largely involved communication with investors from the United Kingdom, Continental Europe, and the United States.

The notes are to be listed on the London Stock Exchange and have ratings of B2 (Stable outlook) and B (Stable outlook) from rating agencies Moody’s and Fitch respectively.

RMB was appointed as global coordinator and active book-runner for the transaction alongside other banks, with RMB assisting the issuer to ensure that BOI’s unique credit story and the developmental impact was best articulated to a diverse global investor base.

Said Chidi Iwuchukwu, Head of Investment Banking, RMB West Africa: “It is extremely satisfying to work closely with the Nigerian DFI to bring to fruition their developmental objectives to create jobs and enable growth and sustainability for businesses in different sectors of Nigeria’s economy. International issuance by West African clients has continued to grow and RMB is proud to have had the opportunity to assist an indigenous entity to access capital for growth, globally.”

Said Suliyat Adeleke, DCM Transactor at RMB: “As a DCM banker pursuing opportunities in Nigeria for a number of years, the success of the transaction is very fulfilling. Being Nigerian-British, I am ecstatic at the opportunity to be of service to one of my countries. As a member of the Nigerian female youth in the diaspora, I am excited about this transaction and feel personally vested in BOI’s success, as empowerment of Nigerian Youths and Women is a core part of BOI’s developmental mandate. I am also proud of BOI’s efforts and wish the institution success in achieving its vision.”

As of November 2021, BOI has total assets of US$4.3bn and has a 60+ year developmental track record. The Institution supports projects with potential developmental impact and has supported circa three million enterprises and created seven million jobs since 2015. The Bank has also focused on emerging sectors that are typically underserved by other financial institutions such as the youth segment, female-owned businesses, renewable energy, and the entertainment industry.                                                                    

Olukayode Pitan, Managing Director and Chief Executive at BOI, said the issuance is aligned with Agenda 2050 and Nigeria’s National Development Plan 2025: “BOI has been in operation for over 60 years with a significant understanding of the Nigerian banking sector. Our developmental mandate is guided by the National Development Plan 2025 and primary drivers of our strategy is to provide lower interest rates, job/value creation, women & youth empowerment, and sustainability, to name a few.” 


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