GlobalCapital: How significant was the August 2024 transaction for BOI and how does it align with the bank’s long-term goals?
Olusi: The deal, which ultimately reached €1.879bn during general syndication, is a landmark achievement for the Bank of Industry (BOI), marking the largest fundraising by any Nigerian or African development finance institution (DFI). This deal significantly enhances BOI’s ability to provide affordable, long-term financing to businesses, particularly in the industrial, manufacturing, and SME sectors.
In terms of alignment with the bank’s long-term goals, this transaction plays a pivotal
role in advancing BOI’s strategy to strengthen Nigeria’s industrial base and economic
resilience. The funds will directly support BOI’s mandate to expand industrial financing by growing its loan portfolio, enabling the bank to provide more funding to critical sectors and contribute to Nigeria’s industrialization agenda.
GlobalCapital: How will the proceeds from this transaction help support Nigeria’s private sector, and which industries or sectors stand to benefit the most?
Olusi: The proceeds will help empower businesses, drive economic diversification, and
support Nigeria’s industrialisation. The funds will boost MSMEs, driving job creation and innovation. Key sectors such as manufacturing, agro-processing, and value-adding industries will see growth, enhancing local production. Investments in fintech, startups, and ICT infrastructure will accelerate digital transformation, while renewable energy projects will improve power supply and sustainability. The healthcare sector will benefit from stronger local production and improved infrastructure, and investments in transport and logistics will enhance trade and connectivity.
GlobalCapital: What factors allowed BOI to come to market with transactions of such size and oversubscription?
Olusi: Several key factors have contributed to BOI’s ability to secure large-scale funding
and achieve oversubscription. As Nigeria’s oldest and largest DFI, BOI’s strong capital raising track record of successfully raising over $5bn and repaying over $4bn without any challenges over the prior five years has established the bank as a strong partner to our lenders. The bank has also developed strong relationships with its lenders as a trusted partner with a viable business model that has been successful through various economic cycles. The deal benefited from the combined expertise of our partners and their extensive network of investors.
The bank also worked with its advisers to structure and sufficiently de-risk the transaction to the extent that attracted various pools of investors. Features like the dual tranche, dual currency, targeting investors with appetite for partial guarantee and those that prefer a full guarantee and a very vigorous NDR all worked to widen the investor universe including ECAs.
GlobalCapital: The Africa Finance Corporation (AFC) played a key role in this transaction. How important are partnerships like this in your capital-raising strategy?
Olusi: Partnerships with institutions like the AFC are vital to BOI’s capital-raising strategy. Credit enhancements like the one provided by AFC, the dual currency and tranche features embedded in the transaction structure strengthened BOI’s ability to secure large-scale funding from global investors at competitive rates and to attract pools of liquidity that may otherwise not be in play.
The shared experience and commonality of goals with such partners supports the deployment of innovative financing structures to achieve the desired goal of accessing a lot of funds on favorable terms. BOI as an impact investor is then able to pass on these benefits to its customers and trigger positive developmental outcomes.
GlobalCapital: What role does sustainability play in BOI’s lending strategy? Are there plans to increase funding for green or climate-friendly projects?
Olusi: Sustainability is a core element of BOI’s lending strategy. The bank is committed to financing projects that drive economic growth while minimising environmental impact.
As part of its 2025–2027 strategy, climate is one of the six key focus areas, underscoring BOI’s dedication to fostering a low-carbon economy and sustainable industrial growth.
The bank integrates sustainability into its risk management processes to ensure proper categorisation of the loan portfolio and implementation of measures to encourage cleaner production, energy efficiency, sustainable agricultural practices etc. Additionally, BOI ensures that borrowers meet Environmental, Social, and Governance (ESG) standards. To further its commitment, BOI has established a dedicated Climate Finance Group and appointed sustainability champions to focus on climate-related investments, ensuring these projects align with sustainability goals.
BOI is also in the process of finalizing its sustainability financing framework. This will enhance BOI’s ability to attract green financing and/or sustainability linked funding.
GlobalCapital: What’s next for BOI in terms of capital raising and lending?
Olusi: BOI intends to continue raising more patient capital on favorable terms as it strives to
fill the huge funding gap faced by the private sector players in Nigeria. To achieve this, BOI will continue to work closely with its shareholders, stakeholders and partners to diversify its funding sources and attract the required debt and equity funding. This will be through pure and tier 2 equity calls, syndications, bonds, and thematic funding schemes specially aimed at vulnerable sectors and segments like MSME, gender, sustainability and youth.
As a national DFI, BOI’s focus will continue to be Nigeria for now. BOI aspires to be a leading DFI delivering high impact and developmental outcomes that will set a benchmark for all DFIs on the continent.