Nigeria’s Bank of Industry (BOI) has issued a €700 million Eurobond to fund business growth in Nigeria. The five-year euro-denominated instrument is guaranteed by the federal government and issued at a yield of 7.5%.
The deal was backed by Rand Merchant Bank (RMB), global coordinator and active bookrunner on the issue. The bond was initially set at $500 million.
According to the RMB, BOI is the first African national development finance institution to issue a public Eurobond. The issue should be used to unlock financing for the Nigerian industrial sector.
“This agreement represents the institution’s first Eurobond (BOI), the provision of the first sovereign Eurobond guarantee, as well as Nigeria’s first euro-denominated transaction, creating a benchmark for other potential issuers. of the region,” the statement read.
The transaction is respectively rated B2 (stable outlook) and B (stable outlook) by Moody’s and Fitch.
