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BOI Raises $3b capital for businesses, woos companies to list on stock exchange

Bank of Industry (BoI)

BOI Raises $3b capital for businesses, woos companies to list on stock exchange – The Bank of Industry (BOI) recognises the importance of the stock market in the growth and sustainability of businesses and will encourage start-ups, micro, small and medium enterprises and other businesses under the financing support of the BOI to seek quotation at the stock exchange.

Managing Director, Bank of Industry (BOI), Mr Olukayode Pitan said the bank would encourage companies to seek quotation on the exchange given the importance of specialised services offered by the market.

Pitan spoke at the award ceremony for the conferment of Honourary Fellow of the Chartered Institute of Stockbrokers (CIS) on him. He emerged the third Nigerian to earn the prestigious Honorary Fellowship of the institute. Other Honourary Fellows included General Yakubu Gowon and Mr Atedo Peterside. Meanwhile, Chief Olusegun Obasanjo, General Ibrahim Babangida, Alhaji Aliko Dangote and Mr Aig Imoukhuede are to be conferred on later dates.

Pitan, who commended the institute’s governing board for the honour, noted that he had led BOI to successfully raised about $3 billion from the international market over the last three years, including $750 million syndicated medium- term loan for the bank in 2018, working with Africa Export Import Bank (AFREXIMBank), one billion Euro syndicated loan with 24 financial institutions and investors in March, 2020, at the onset of Covid-19 lockdown and conclusion of a $1 billion syndicated loan, working with 64 financial institutions and investors in the international market.

According to him, the BOI has a lot more to achieve for over 40 million micro industries in Nigeria.

“We have recognized the urgent need for specialized investment banking and we shall encourage the beneficiaries of our bank loan to seek quotation on the securities exchanges. We shall offer concessionary rates to support and also seek patience capital from government to enhance the growth of our Micro, Small and Medium Scale Enterprises,” Pitan said.

The CIS said the rationale for the conferment of Honourary Fellowship to Pitan was the bank’s pivotal roles in the growth and development of micro, small and medium scale enterprises in Nigeria.

Besides, the Institute is anticipating listing of some of the companies that have benefited from BOI loans to list on various securities exchanges in Nigeria.

Addressing participants at the award ceremony in Lagos, President and Chairman of Governing Council, Chartered Institute of Stockbrokers (CIS) Mr Olatunde Amolegbe explained that Honourary Fellowship is conferred only on persons who have recorded outstanding achievements with significant contributions to the growth and development of the Nigerian economy.

“We in the Nigerian capital market community are particularly excited by the work that Mr Pitan and BOI are doing to incubate micro, small and medium scale enterprises that not only serve as  major sources of employment generation in the country but provide a clear path toward industrialization of the Nigerian economy. Suffice to say that BOI also provides a pipeline to the potential listing of these entities on the various securities markets.

“ Our expectation is that through the efforts of Mr. Pitan and his team, more of the likes of Friesland Campina WAMCO Nigeria Plc that was incubated by the bank will get listed on the various bourses on which we stockbrokers trade. You undoubtedly have what it takes to be instrumental to the anticipated listing of more companies, including Dangote Refinery in the near future,” Amolegbe said.

Guest Speaker and Chairman of Absa Nigeria, Mr Adedotun Sulaiman said that there had been a general consensus that efficient capital market could promote growth of any economy through sustainable low-cost distribution channel for multiple financial products and services.

“The Bank of Industry (BOI) is a partner in progress in the actualization of an industrialised economy in Nigeria and will continue to take deliberate steps towards addressing issues around funding across all business segments,” Sulaiman said.

The Honourable Minister, Industry, Trade and Investment, Otunba Niyi Adebayo and his predecessor, Dr Okechukwu Enelamah were among the top dignitaries at the high profile ceremony which coincided with Pitan’s birthday.

Categories: ECONOMY
Cynthia Charles: She is a prolific writer and has special interest on writing about business and opportunities. She can be contacted via cynthiaadigwe@financialwatchngr.com
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