White & Case advises bank group on Bank of Industry’s up-to €2 billion term loan facility

Global law firm White & Case LLP has advised a bank group on an up-to €2 billion underwritten syndicated term loan facility for Nigeria’s Bank of Industry Limited which, following an initial general syndication closing, has now raised €1.879 billion equivalent.

“We have long recognised the significant role that African DFIs play in sub-Saharan Africa,” said White & Case partner James Hardy, who led the Firm’s deal team. “At a time when the Nigerian economy remains under significant pressure, we helped our clients AFC and SCB support Bank of Industry to raise international loan market capital on a potentially transformational scale and added a further benchmark transaction to the Firm’s more than 40-year track record in Nigeria.”

White & Case advised Africa Finance Corporation (AFC) and Standard Chartered Bank (SCB) as global co-ordinators; African Export-Import Bank, AFC, First Abu Dhabi Bank PJSC, Firstrand Bank Limited, acting through its Rand Merchant Bank division (London Branch), Mashreqbank psc, SCB and SMBC Bank International plc as initial mandated lead arrangers and bookrunners; Absa Bank (Mauritius) Limited, Absa Bank Limited (acting through its Corporate and Investment Banking division) and Export-Import Bank of India London Branch as initial mandated lead arrangers; and African Export-Import Bank as agent.

The transaction represents the Firm’s fifth time as lenders’ counsel on credit-enhanced syndicated loans into the Bank of Industry and is the largest capital raise in its history. The first loan market deal in 2018 was viewed as de facto re-opening the syndicated loan market for Nigerian financial institutions. The financing benefits from credit support in the form of guarantees from both (third party credit enhancement) AFC and (major shareholder) the Central Bank of Nigeria. Under an increase mechanism, the total facility could be further increased up to €2 billion (approximately US$2.1billion).

The Bank of Industry is Nigeria’s oldest, largest and most successful development financing institution with a mandate to enable development in Nigeria’s industrial sector.

The White & Case team which advised on the transaction was led by partner James Hardy (London) and included associates Vic Sohal, Jere Agbaje, Silvia Kaur Gill (all London) and Prema Govind-Hitti (Dubai).

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