BoI Raises Over $5Bn Funding, 2Bn Euro Syndications

In its bid to provide adequate funding for Nigeria’s industrial development finance, the Bank of Industry Limited, BoI, has raised over $5 billion in international funding instruments.

The bank has also executed €2 billion loan syndications which is the largest fundraising in its history and the largest syndication in the history of African development finance institutions, DFIs.

To adequately deploy these funds the bank has created over 300 Business Development Service providers supporting SMEs nationwide. The bank also has established a robust onlending program with various financial institutions, including microfinance banks and fintechs.

These were disclosed by the Managing Director of the bank, Dr Olasupo Olusi, while briefing newsmen in Lagos on the bank’s 65th anniversary.

He stated: “In 2017, BOI commenced raising funds on the international market with a $750 million AFREXIM loan. Since then, we have successfully raised over $5 billion from the international capital markets through Eurobonds, loan syndications, and green finance instruments. This month, we concluded a global loan syndication that raised nearly 2 billion euros.

“One key thread in achieving these milestones through the years is our partners. BOI has established strategic partnerships with key local public and private institutions, as well as global financial and multilateral institutions to enable the bank to fulfill its mandate effectively. BOI partners with state governments, and foundations to establish the “Matching Fund” scheme.

“We also have partnerships with trade associations, such as the National Association of Small and Medium Enterprises (NASME), Nigerian Association of Small-Scale Industrialists (NASSI), and Manufacturers Association of Nigeria (MAN), to deepen real sector financing.

BOI recently signed a partnership agreement with SMEDAN to provide Nano and Micro Enterprises in Nigeria with a N1 billion fund at a single-digit interest rate. We have partnerships with several other public agencies like NCDMB, to support specific sectors.”

Listing further achievements of the bank, Olusi stated: “In November 2023, the Federal Government of Nigeria appointed BOI as the executing agency for the N200 billion FGN MSME Intervention Fund, which includes a N50 billion Presidential Conditional Grant Scheme (PCGS), a N75 billion Manufacturing Sector Fund, and a N75 billion MSME Intervention Sector Fund.

This program is currently being disbursed and there are numerous stories on the impact on private enterprises.

“Our strategic partnerships also extend to numerous organisations, such as African Development Bank (AfDB), the African Finance Corporation (AFC), Investment Climate Reform (ICR) initiative, the African Guarantee Fund (AGF), the Multilateral Investment Guarantee Agency (MIGA), the United States Export-Import Bank (USEXIM), the International Finance Corporation (IFC), etc. and several others.

“In the last twelve months, we have also revised our strategy to focus on impact and   introduced various strategic initiatives in alignment with President Bola Ahmed Tinubu’s Renewed Hope Agenda and in response to emerging macroeconomic issues.