Bank of Industry Issues €700 Million Eurobond at 7.5%

Bank of Industry Issues €700 Million Eurobond at 7.5%

Bank of Industry (BOI), Nigeria’s largest Development Finance Institution (DFI), has issued a 5-year €700 million Eurobond, 40 per cent above initially planned capital raise at the international debt capital market as the offer was oversubscribed.

In a note, FSDH Capital said the local development finance institutions priced the foreign bond at a yield of 7.50 per cent by way of 144A/RegS senior note participation notes. Read: Fitch Rates BOI Senior Note Participation Notes ‘B (EXP)’

The Eurobond has irrevocably and unconditionally guaranteed by the Federal Government of Nigeria, according to the issuer document.

The result of the Eurobond sales shows that BOI successfully raised €700 million (as against expected €500 million) after 1.5 times oversubscribed order book comprising high-quality buy-and-hold international investors across the UK, Continental Europe, and the US.

FSDH Capital told clients via email that 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.

For the capital raise, Rand Merchant Bank was appointed as global coordinator and active book-runner for the transaction alongside other banks, the statement reads. #Bank of Industry Issues €700 Million Eurobond at 7.5%