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Bank of Industry raises €1bn from international market

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In line with the focus of President Muhammadu Buhari’s administration to revitalize Nigeria’s industrial sector and create 10 million jobs by leveraging the Nigeria Industrial Revolution Plan and the Economic Recovery and Growth Plan, the Bank of Industry (BOI) recently concluded raising the sum of €1 billion (approximately $1.11billion) from the international capital market.

The transaction is aimed at improving the capacity of the bank to continue to effectively support Micro, Small, Medium and Large enterprises (across key sectors) of the Nigerian economy with affordable loans of medium to long-term tenor, alongside moratorium benefits.

African Export-Import Bank, Credit Suisse, Rand Merchant Bank and Sumitomo Mitsui Banking Corporation were the Joint Mandated Lead Arrangers, Underwriters and Book runners of the Syndicated Medium-term Facility. The investors include the Lead Arrangers, alongside 20 other international financial institutions.

As part of the roadshow, the management team of the Bank of Industry presented its information memorandum to an audience of about 60 potential investors in London in December 2019. The investors were particularly impressed with the business model and corporate governance structures of the bank.

The transaction was subsequently launched on 15th January 2020 with an initial size of €750 million. Upon closing on 19th February 2020, the deal was oversubscribed by 60%. The deal size was thereafter upsized to a sum of €1 billion.

The transaction is a further confirmation of the acceptance of the Bank of Industry in the international financial market, following its first successful fund raising transaction in 2017, which raised $750 million from a syndicate of 16 international banks.

Key factors that led to the success of this deal include amongst others, the impressive credit ratings of the bank (Long Term Issuer Default Ratings of B+, B2 and Aa from Fitch, Moody’s and Agusto respectively), its ISO certifications in both Quality Management Systems and Information Security, as well as the strong strategic partnership that the bank has developed with the Nigerian commercial banks, who provide credit enhancements and de-risking tools to BOI customers.

Of particular and special note is the support of the Governor of the Central Bank of Nigeria and his Committee of Governors, which was crucial to the success of this transaction. The Apex Bank supported BOI throughout the entire process with technical advice and all approvals as required that saw this transaction through from inception to its conclusion. The Central Bank also provided BOI with 100% currency swap to mitigate the foreign exchange rate risk.

The facility will be disbursed in Naira at single digit interest rate to borrowers with bankable projects.

In 2019, the Bank of Industry with the support of its various stakeholders disbursed a total of ₦234 billion to 10,145 enterprises, thus creating over 1 million estimated direct and indirect jobs.

With the successful conclusion of this €1 billion medium term syndicated facility, BOI (which is owned by the Central Bank of Nigeria and the Federal Ministry of Finance Incorporated) is poised to catalyze domestic production and job creation on a transformational scale, enhance local industry competitiveness, attract domestic and foreign investments, integrate our local industries into domestic, regional and global value chains, grow our export earnings and positively impact the overall economic development of Nigeria in line with its mandate.

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BUSINESS

COVID-19: Our branches are open nationwide – FirstBank

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COVID-19: Our branches are open nationwide – FirstBank

First Bank of Nigeria Limited has said that all its branches across Nigeria are open to customers despite the COVID-19 pandemic ravaging the nation.

The lender in a statement by its Group Head, Marketing & Corporate Communications, Mrs. Folake Ani-Mumuney, and made available to THE WITNESS on Saturday, however disclosed that it will run skeletal operations in some of its branches following the state government directives.

“Following the directives for partial lockdown in several states across the country, we will be offering skeletal services in some of our branches across the nation.

“These branches will be open from 9:00am to 2:00pm, Monday to Friday. We have implemented all necessary health and safety measures across these branches to keep you safe at all our locations.

“For the list of branches, please go to https://www.firstbanknigeria.com/list-of-open-branches-nationwide/

“Our alternative channels are available for you 24/7 during this period.

“Thank you for your understanding at this period as we continue to work to put You First,” the statement said.

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BUSINESS

COVID-19: NNPC, 33 partners donate $30m to Nigerian govt

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COVID-19: NNPC, 33 partners donate $30m to Nigerian govt

The Nigerian National Petroleum Corporation, NNPC, with 33 partners have donated 30 million dollars to support the federal government’s efforts at curbing the spread of Coronavirus also known as COVID-19.

The Group Managing Director of the Corporation, Mele Kyari, made this known during a Live Streaming news conference, in Abuja, on Friday.

“In recognition of the impact of the COVID-19 pandemic on the Nigerian population and economy, the Nigeria oil and gas industry under the leadership of the NNPC GMD Mele Kyari has embarked on an industry- wide collaborative intervention initiative to combat the pandemic and its attendant impact.

“The intervention initiative is in alignment with the ongoing Federal Government’s efforts and in collaboration with the NCDC to curb the pandemic.

“It is aimed at supporting our national healthcare delivery facilities and cover three key thematic areas,” he said.

The three thematic areas he said are provision of medical consumables, deployment of logistic and in-patient support system and delivery of medical infrastructure.

” The three thematic support initiatives amount to a total of 30 million dollars and will be delivered in phases starting from March 27.

He added that to address the increasing demand for medical services the sector would immediately provide medical consumables covering test kits, medical protective suits and ambulances to impacted areas.

“This will be followed in the next few days with deployment of ventilators, beds and temporary intensive care facilities across the geopolitical zones of the federation.
“As a responsive and responsible industry, we are taking this action to strengthen our collective national resolve in combating this pandemic and its dreadful impact,” he added.

Kyari said that the 33 partners who contributed to the intervention are drawn from the upstream sector and the companies drawn from oil producers trade section and the Independent Petroleum Producers Group.

He named some of the companies to include Shell Group of Companies, EXXONMOBIL GROUP, Total Group, Chevron Group, ENi Group,ADDAX Petroleum and Aiteo Eastern Exploration.

Others are AMNI International Petroleum Company, Dansaki Petroleum Development, Eroton Exploration and Production Company among many others.

In the downstream sector, he said that DAPPMA donated N120 million for the provision of 36 ventilators and 1,500 medical overalls while MRS donated 2,000 test kits, 1,000 medical overalls and 100 million Naira for ambulances.

“Matrix Energy provided N360 million for necessary medical equipment, Major Marketers Association of Nigeria (MOMAN) 50 ventilators and OVH 200 ambulances for use.

“Also, Eyrie Oil donated 1500 medical overalls and lab equipment for one diagonistic centre, WIEN, test kits and Lab equipment, BONO, MOCOH, LEVENE oil donated N18 million each,” he said.

Mr Kyari noted that health and safety of Nigerians remained paramount to the oil and gas sector noting that the sector was still open for more interventions from all partners.

NAN

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BUSINESS

Fidelity Bank staff tests positive for COVID-19

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Fidelity Bank staff tests positive for COVID-19

Fidelity Bank says one of its staff who returned from a holiday in the United Kingdom has tested positive for coronavirus (COVID-19).

In a statement released on Tuesday, the bank said the individual has embarked on self-isolation upon his arrival in the country in line with its policy that mandates staff/family members who have travelled overseas in recent time to self isolate for 14 days and test for the virus before returning to work.

Fidelity Bank mandates staff or immediate family member(s) who travel out the country to self-isolate for two weeks and obtain medical clearance before returning to work as part of our COVID-19 preventive and precautionary measures,” the statement signed by Charles Aigbe, the bank’s divisional head for brand and communications, read.

“This process was activated and strictly adhered to by one of our staff members who returned from holidays in the United Kingdom.

“He was in self-isolation and underwent testing in line with the bank’s policy. The test results returned positive at the weekend and we quickly arranged for him to be moved to the Nigeria Centre for Disease Control (NCDC), where he is currently being attended to by health officials.”

According to the bank, two other members of staff who received gifts from the individual have also been made to self-isolate and the office where they work has been temporarily closed.

The bank said no customers were identified in the contact tracing that was carried out.

Also, the bank said it has shut down its business office at the federal secretariat in Abuja and advised all staff/vendors to self-isolate and go for testing in line with its policy on COVID-19, on account of possible exposure of a vendor staff.

The bank said it is carrying out other measures like reducing the number of staff expected to report physically at work and number of customers allowed at a time in the banking hall to a maximum of five to curb the spread of the virus.

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