The African Export-Import Bank (Afreximbank) has raised a $1 billion facility for the Bank of Industry (BoI). The operation was carried out with Credit Suisse and a syndicate of 27 investors.

Africa Finance Corporation, Rand Merchant Bank, SMBC and Export Import Bank of China also participated in the operation.

The facility constitutes the largest international syndicated loan granted to a financial institution since the onset of the economic difficulties induced by the coronavirus pandemic.

The amount raised will provide financial support to the Bank to improve its lending capacity in support of Micro, Small and Medium Enterprises (MSMEs) in key sectors in Nigeria, by providing medium and long term loans accompanied by a moratorium.

The transaction follows a previous €1bn syndicated facility for BoI, which closed in March 2020. The bank raised $750m in 2018 with backing from the African Import Bank. export “Afreximbank”, a loan that has been fully repaid.

The bank further indicated that the facility will be disbursed in naira at single digit interest rates to borrowers with bankable projects.