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BOI Raises $1Bn from International Capital Market for SMEs

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Bank of Industry (BOI) said it has raised €1 billion (approximately $1.11billion) from the international capital market, towards revitalising Nigeria’s industrial sector and creating 10 million jobs

BOI Raises $1Bn from International Capital Market for SMEs

Mr Kayode Pitan, managing director of BOI, in a statement on Friday in Lagos, said that the fund was in line with the focus of President Muhammadu Buhari’s administration.

Pitan said that the fund would leverage Nigeria Industrial Revolution Plan and the Economic Recovery and Growth Plan to achieve its target.

He said that the transaction was aimed at improving the capacity of the bank to effectively support Micro, Small, Medium and Large enterprises across key sectors of the economy.

According to him, it will help key sectors with affordable loans of medium to long-term tenor, alongside moratorium benefits.

“With the conclusion of the €1 billion medium term syndicated facility, BOI owned by the Central Bank of Nigeria and the Federal Ministry of Finance Incorporated, is poised to catalyse domestic production and job creation on a transformational scale.

“It will also enhance local industry competitiveness, attract domestic and foreign investments as well as integrate local industries into domestic, regional and global value chains,” he said.

The managing director said the fund would also grow export earnings and positively impact the overall economic development of Nigeria in line with its mandate.

The BOI boss said that African Export-Import Bank, Credit Suisse, Rand Merchant Bank and Sumitomo Mitsui Banking Corporation were the joint mandated lead arrangers, underwriters and book runners of the syndicated medium-term facility.

He added that the investors include the lead arrangers, alongside 20 other international financial institutions.

Pitan further said that the management team of BoI presented its information memorandum to an audience of about 60 potential investors in London in December 2019.

“The investors were particularly impressed with the business model and corporate governance structures of the bank.

“The transaction was subsequently launched on Jan. 15, with an initial size of €750 million.

“Upon closing on Feb. 19, the deal was oversubscribed by 60 per cent. The deal size was thereafter upsized to €1 billion,” he said.

Pitan said the transaction was a further confirmation of the acceptance of BoI in the international financial market, following its first successful fundraising transaction in 2017, which raised $750 million from a syndicate of 16 international banks.

He said that factors that led to the success of the transaction include, the impressive credit ratings of the bank Long Term Issuer Default Ratings of B+, B2 and Aa from Fitch, Moody’s and Agusto respectively.

He noted that CBN’s backing assisted in making the transaction successful, adding that it supported BOI with technical advice, approvals and 100 per cent currency swap to mitigate the foreign exchange rate risk.

The BOI boss said that the facility would be disbursed in Naira at single digit interest rate to borrowers with bankable projects.

Pitan added that the bank in 2019, disbursed ₦234 billion to 10,145 enterprises, and thus created an estimated one million direct and indirect jobs.

 


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E-Financial

FG Makes u-Turn on Bank Account Re-Registration

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Federal government on Friday apologised for asking all account holders in financial institutions in the country to re-register their personal details.

FG makes u-Turn on Bank Account Re-Registration

Recall that the federal government had on Thursday ‎ordered that all persons holding accounts across financial institutions and insurance firms should complete and submit self-certification forms to their respective financial institutions.

The notice issued by the government to that effect read, ‎“This is to notify the general public that all account holders in Financial Institutions (Banks, Insurance Companies, etc.) are required to obtain, complete, and submit Self – Certification Forms to their respective Financial Institutions.

“Persons holding accounts in different financial institutions are required to complete and submit the form to each one of the institutions. The forms are required by the relevant financial institutions to carry out due diligence procedures, in line with the Income Tax Regulations 2019.‎”

The directive raised eyebrows, as account holders already possessed Bank Verification Numbers.

Following widespread condemnation that trailed the directive, the Federal Government backtracked on Friday, saying the fresh guidelin‎e was not for all Nigerians.

The government attributed the development to misinformation.

The clarification issued by the government on Friday read, ‎“We apologise for the misleading tweets (now deleted) that went up yesterday, regarding the completion of self-certification forms by Reportable Persons. The message contained in the notice does not apply to everybody. ‎FIRS will clarify Nigerians on the objectives of the directive.”

Also on Friday, FIRS, in a statement posted on Twitter, explained that the guidelines were only for non-residents, as well as people paying tax in more than one country.

Parts of the FIRS statement read, “The Self Certification Form is basically to be administered on Reportable Persons, holding accounts in Financial institutions, that are regarded as “Reportable Financial Institutions” under the CRS.

“Reportable persons are often non-residents and other persons, who have residence for tax purposes in more than one jurisdiction or country.”

“The information that indicates an account holder is a resident for tax purposes in more than one jurisdiction, is expected to be available to Financial Institutions during account opening processes, for the KYC and AML purpose.”


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Stanbic IBTC Bank Disowns Lagos ATM Fraudster

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Stanbic IBTC Bank PLC has disowned Tope Olajide, 22-year-old fraudster arraigned for theft of customers deposits.

Stanbic IBTC Bank Disowns Lagos ATM Fraudster

The Bank said this in a statement on Wednesday.

The statement said: “The attention of the management of Stanbic IBTC Bank PLC has been drawn to news currently circulating in the media, about the alleged arraignment of staff of the Bank on charges bordering on the theft of customers deposits.

“The Bank would like to clarify that the defendant, a 22-year-old Tope Olajide, IS NOT, and was at no point in time an employee of Stanbic IBTC Bank PLC.

“The alleged culprit was apprehended around 7:30 am, on Thursday, 27 August 2020, by security operatives after he was exposed by CCTV footage using ATM cards he had allegedly stolen and converted, to make withdrawals from the accounts tied to the stolen ATMs.

“The CCTV footage also showed the alleged culprit pretending to assist customers at ATMs whilst also attempting to fraudulently dispossess the customers of their ATMs.

“He was subsequently arraigned before an Ikeja Magistrate Court on Monday, 14 September, for stealing the debit cards of two customers and using them to unlawfully withdraw the sum of N427,000.

“The Bank would also like to implore members of the public to be security conscious when conducting transactions at ATMs. Customers are advised to report any suspicious actions around them to security operatives who are usually stationed around the Bank’s ATMs, when carrying out transactions at any of our ATM locations.

“As an organisation, we hold dear the values of integrity, and we will continue to prioritise the safety of our customers effectively.”


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Buhari Okays Establishment of CBN-Led Infraco

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President Muhammadu  Buhari has approved the establishment of an   Infrastructure Company (Infraco) to be driven by the Central Bank of Nigeria (CBN) in partnership with the African Finance Corporation (AFC) and the Nigerian Sovereign Investment Authority (NSIA).

Buhari Okays Establishment of CBN-Led Infraco

Mr. Godwin Emefiele, CBN governor

This is coming  on the heels of the foreign reserves’ slump to $36 billion following a cocktail of monetary policy interventions by the apex bank to cushion the scathing effects of the COVID-19 pandemic on the economy.

Mr Godwin Emefiele, CBN governor, made these disclosures in Abuja at the annual conference of the Chartered Institute of Bankers of Nigeria (CIBN) with the theme: Facilitating a Sustainable Future: The role of Banking and Finance.

According to him, Infraco would enable the use of private and public capital to support infrastructure investment that will have a multiplier effect on growth across critical sectors.

“This entity would also be able to raise funds from the capital markets and mobilise long term finance to address some of our infrastructure needs, while providing reasonable returns to investors. “We believe this well-structured fund can act as a catalyst for growth in the medium and the long run. The support of the banking community will be important in achieving this objective.

“A well-built infrastructure system, comprising hard infrastructure such as roads and ports, and soft infrastructure such as broadband penetration, can have a multiplier effect on growth by enabling the expansion of business activities in the country”, he explained.

On foreign reserves, Emefiele attributed its crash to the decline in foreign exchange earnings and subsequent adjustments in the value of the naira to the dollar.


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