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BOI to start servicing Afreximbank’s EUR 2bn Debt After 1 year

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The Afreximbank’s EUR 2 billion syndicated term loan facility for Bank of Industry (BOI) Nigeria has a three-year tenor with quarterly repayments commencing after the first year.

In a statement, Afreximbank, said that it acted as one of the Initial Mandated Lead Arrangers, Bookrunner and Facility Agent in the said loan facility.

“Said the statement: The facility is backed by a first demand guarantee and is structured into two tranches.

Tranche A is guaranteed 85% by the Africa Finance Corporation and 15% by the Central Bank of Nigeria (CBN) for both principal and interest.

Tranche B is 100% guaranteed by the AFC for both principal and interest. The Bank disbursed its participation amount of EUR 175 million in September 2024 in two tranches of EUR 115 million in Tranche A and EUR 60 million under Tranche B.

Afreximbank was also involved in the processes leading to financial close and disbursement of up to EUR 2 billion by all the lenders, including the early bird syndication in August 2024 as the Facility Agent. 

BOI is expected to use the proceeds of the facility to finance trade and trade related projects of eligible corporates in Nigeria.

 “This significant transaction underscores Afreximbank’s commitment to supporting Nigeria’s economic growth,” said Mr. Denys Denya, Senior Executive Vice President at Afreximbank.

“By actively participating as lender, bookrunner, and agent, we are not only providing crucial financing to Bank of Industry but also facilitating access to critical resources that will empower Nigerian businesses and drive sustainable development across the country.

” Dr. Olasupo Olusi, Managing Director of Bank of Industry, stated: “This landmark syndicated facility of up to EUR 2 billion is a testament to the confidence global financial institutions have in the Bank of Industry’s track record and its pivotal role in driving Nigeria’s industrial and economic transformation.

We are particularly grateful for Afreximbank’s significant participation and unwavering support both as a lender and facilitator in this transaction.

This funding will empower us to further finance critical projects, ultimately fostering sustainable growth and development for corporates across Nigeria.”

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UPDATE: NUPENG Skips Meeting to Resolve Dispute with Dangote in Abuja

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The leadership of the National Union of Petroleum and Natural Gas Workers (NUPENG) failed to attend a crucial Federal Government meeting aimed at resolving its dispute with the Dangote Group, as tensions escalate over a planned nationwide strike by oil workers.

The meeting, called by the Minister of Labour and Employment, Muhammad Dingyadi, was set for 10:00 a.m. on Monday at the ministry’s headquarters in Abuja. However, by 2:30 p.m., the meeting had yet to start due to the absence of NUPENG representatives.

On Sunday, the Federal Government appealed to NUPENG to postpone the industrial action, assuring that it had intervened in the dispute. It also urged the Nigeria Labour Congress (NLC) to withdraw its “red alert” issued to affiliate unions preparing for a solidarity strike.

An insider noted that even if NUPENG plans to attend the meeting, it won’t be immediate. “They can’t be expected to fly into Abuja and rush into talks the same day. Consultations with NLC leadership and others need to happen first,” the source explained.

The core of the conflict centers on the Dangote Group’s alleged anti-union policy, which NUPENG claims violates workers’ rights. The union insists that no oil worker will be allowed to work at Dangote without union membership, accusing the company of an “anti-worker and anti-union” stance aimed at exploiting refinery employees.

NUPENG officials were still in Lagos on Monday afternoon, coordinating the strike effort. “You don’t wait until a strike is declared before calling for talks,” one union source said, criticizing the government’s delayed response. “The union gave sufficient notice, but the ministry only acted after tensions rose.”

Meanwhile, while journalists awaited the start of the NUPENG meeting, Minister Dingyadi held a separate closed-door session with representatives of the Nigerian Medical Association (NMA).

The government has yet to announce a new meeting date or confirm if NUPENG will participate at a later time.

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UPDATE: NUPENG Accuses Dangote Refinery of Fuel Sector Monopoly, Warns of Massive Job Losses

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The Nigerian Union of Petroleum and Natural Gas Workers (NUPENG), representing Petroleum and Tanker Drivers (PTD), has condemned Dangote Refinery’s decision to deploy 10,000 Compressed Natural Gas (CNG) tankers for petroleum product distribution, calling it a monopoly that threatens the livelihood of thousands of workers in the sector.

NUPENG described the move as anti-labour and harmful to PTD members, highlighting that drivers recruited by Dangote for these operations are reportedly barred from joining any trade union. The union warned this action violates both the 1999 Nigerian Constitution and international labour laws.

Speaking anonymously, some tanker drivers expressed concerns to journalists that unless the Nigerian Midstream and Downstream Petroleum Regulatory Authority intervenes swiftly, the situation could escalate and seriously damage the Nigerian economy, affecting millions of livelihoods.

The tanker drivers outlined several looming risks including:

  • Loss of income for tanker owners and their families
  • Unemployment for drivers, motor boys, and support staff
  • Job losses for truck mechanics, painters, welders, and fabricators
  • Decline in business for spare parts dealers, tyre and battery sellers
  • Negative impact on depot representatives, artisans, and food vendors
  • Financial ruin for transporters who have invested heavily in the sector

They warned that the move could result in millions of job losses, sparking social insecurity, increased poverty, and a surge in unemployment nationwide.

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Africa Climate Summit begins in Ethiopia today

The first edition of the summit was held in Nairobi, Kenya, in 2023, where African leaders adopted the Nairobi Declaration — a roadmap for the continent’s green growth and financing agenda.

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The second edition of the Africa Climate Summit (ACS2) commenced today in Addis Ababa, Ethiopia

Themed ‘Accelerating Global Climate Solutions: Financing for Africa’s Resilient and Green Development’, the summit is billed for September 8-10, is being attended by world leaders, private Sector delegates, and top United Nations officials; policymakers, climate experts, and civil society.

Inputs from the deliberations will be used to forge a common African position ahead of the COP30 negotiations scheduled for Brazil next year.

Discussions will centre on how Africa can tap its vast renewable energy potential, showcase homegrown technology, attract climate finance, and strike a balance between development priorities and urgent climate action.

The first edition of the summit was held in Nairobi, Kenya, in 2023, where African leaders adopted the Nairobi Declaration — a roadmap for the continent’s green growth and financing agenda.

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