Bank Of Industry Plans N362bn Eurobond To Support COVID-hit Businesses

Nigeria's Bank Of Industry wants to raise N362 billion ($883 million) from international debt markets this year for lending to Nigerian companies handicapped by the Covid-19 pandemic.

According to a report by Bloomberg, Olukayode Pitan, the chief executive officer said in a virtual interview that financial advisers have been appointed for the issue.

The lender will raise “anywhere between 500 million to 750 million euros,” he said. The bond proceeds will be deployed to areas of priority including health care, transportation, education, solid minerals and agriculture, he said.

The bond will be the lender’s fourth international debt deal since 2018 and comes on the back of the Nigerian government’s appointment of financial advisers earlier this month for a planned $6.2 billion Eurobond issuance.

The Lagos-based development bank also plans to set up as much as $100 million fund to provide credit to startups and information technology companies to enhance their contribution to the nation’s economic recovery, according to the CEO. “It is going to be about $75 million to $100 million being promoted by the Bank of Industry,” he said.