Bank of Industry appoints RMB as Bookrunner for €700 million Eurobond

14 Feb 2022
Financial Nigeria


BOI, the first African national DFI to issue a public Eurobond, has a vision of transforming Nigeria’s industrial sector.

MD/CEO of Bank of Industry Olukayode Pitan

Bank of Industry (BOI), Nigeria’s oldest and largest development finance institution (DFI), has appointed South Africa’s Rand Merchant Bank as Global Coordinator and Active Bookrunner for its EUR700 million Eurobond by way of 144A/RegS Senior Note Participation Notes, irrevocably and unconditionally guaranteed by the Federal Government of Nigeria.

BOI, the first African national DFI to issue a public Eurobond, has a vision of transforming Nigeria’s industrial sector by providing financial and business advisory services for the establishment of large, medium and small enterprises, as well as for the modernisation of existing businesses.

BOI’s mandate is guided by Nigeria’s National Development Plan 2025 and Agenda 2050, which have the objective of lifting a hundred million Nigerians out of poverty in 10 years. The institution is tasked with providing financing for the development of micro, small and large enterprises. This deal represents the institution’s first Eurobond, the provision of the sovereign’s first Eurobond guarantee, as well as the first Euro-denominated transaction from Nigeria, creating a benchmark for other prospective issuers from the region.

The five-year, Euro-denominated senior note instrument is issued at a yield of 7.500%. BOI’s expectation was to raise up to EUR500 million, but successfully raised EUR700 million after a 1.5 times oversubscribed orderbook comprising of high-quality buy-and-hold international investors. The transaction was preceded by an extensive three-day global virtual roadshow, including a global investor call, primarily involving engagement with investors across UK, Continental Europe and the US.

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

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

“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,” Said Chidi Iwuchukwu, Head of Investment Banking, RMB West Africa, said. “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.”

As of November 2021, BOI has total assets of US$4.3 billion and has over 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, BOI, said the issuance aligned with Agenda 2050 and Nigeria’s National Development Plan 2025. “Agenda 2050 is Nigeria’s long-term national development plan targeted at ensuring sustained national development, as well as supporting Nigeria’s regional and global strategic interests. The objectives of the agenda are to lift 100 million Nigerians out of poverty in 10 years, sustain national development and support regional and global strategic interests,” he said.

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