Bank of Industry Eurobond Oversubscribes At EUR700 Million

The Bank of Industry (BOI), assisted by Rand Merchant Bank (RMB), has issued a EUR700m Eurobond. The five-year, euro-denominated senior note instrument has a 7.5 percent yield and is guaranteed by the Federal Government of Nigeria.

According to Thisday, RMB will be the global coordinator and active book-runner for the transaction.

The notes are to be listed on the London Stock Exchange for interested investors residing in the UK, continental Europe, and the USA.

As of November 2021, BOI had a total asset value of US $4.3 billion and has a 60+ year developmental track record.

The objective of Eurobond is to transform 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 modernization 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 statement read.

"BOI's plan was to raise up to EUR500 million, but we were able to raise EUR700 million thanks to a 1.5x oversubscribed orderbook comprised 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 the 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 rating agencies Moody’s and Fitch, respectively. It re-emphasized.