The Bank of Industry (BOI) has recorded a successful debut in Nigeria’s domestic debt capital market, with its inaugural N250 billion Series 1 Fixed Rate Bond attracting subscriptions above the amount offered.

The bond was issued through BOI Financing SPV Plc under the bank’s $1 billion Multi-Currency Instruments Programme and drew strong interest from institutional investors, highlighting growing confidence in BOI and Nigeria’s capital market.

According to a statement obtained by Nairametrics, proceeds from the bond issuance will be deployed to expand BOI’s long-term financing capacity for businesses operating in priority sectors of the economy, supporting industrial growth, job creation, local value addition, and economic diversification.

What they are saying

BOI disclosed that the investor book was diversified across pension fund administrators, commercial banks, development finance institutions, corporates, and other institutional investors.

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The transaction also secured significant anchor investments from the Nigeria Sovereign Investment Authority (NSIA) and the International Finance Corporation (IFC), reinforcing investor confidence in the bank’s credit profile and long-term development mandate.

Commenting on the outcome, BOI Managing Director and Chief Executive Officer, Dr. Olasupo Olusi, said the oversubscription demonstrates the domestic market’s capacity to support large-scale development financing.

  • “The strength of the investor response is a vote of confidence not only in BOI, but also in the capacity of Nigeria’s domestic capital market to mobilise long-term capital for productive investment,” he said.

Olusi noted that the ultimate objective of the issuance is to channel capital into Nigerian enterprises, with the potential to drive industrial expansion, strengthen local value chains, create jobs, and enhance economic competitiveness.

Tinubu’s support boosted investor confidence

The BOI chief credited the strong investor turnout to policy support from President Bola Ahmed Tinubu, noting that executive approvals granted to incentivise investors played a key role in the success of the transaction.

  • “As a Development Finance Institution, we could not have received the strong investor demand for the bond in five working days without the support of President Tinubu, who gave his executive approval for various incentives to encourage investors. This became a leverage and a positive signal to discerning investors,” Olusi said.

He also disclosed that a N100 billion fund approved for BOI by the President would be used to support the pricing of the bond and cushion borrowing costs for manufacturers and other beneficiaries of BOI financing.

Expanding BOI’s funding base

The bank stated that the bond issuance represents a significant expansion of its funding architecture, complementing its access to international capital markets with increased mobilisation of domestic institutional capital.

BOI added that final subscription and allotment figures will be announced after obtaining approval from the Securities and Exchange Commission (SEC).

According to the bank, the quality of demand, competitive pricing achieved, and diversity of the investor base underscore the growing appetite for high-quality long-term investment instruments in the Nigerian market.

Get up to speed

Earlier this month, BOI opened subscriptions for the N250 billion Series 1 Fixed Rate Bond under its $1 billion multi-currency programme.

  • The five-year bond offers semi-annual coupon payments and includes a two-year principal moratorium before amortising repayments commence, reflecting the long-term nature of development finance lending.
  • The offer, which opened on August 5 and closed on August 11, was arranged by Chapel Hill Denham as Lead Issuing House and was priced within a yield range of 17.35% to 17.50%.

The bond is expected to be listed on the FMDQ Securities Exchange following completion of the issuance process.

What you should know

Last month, BOI unveiled an€85 million long-term financing facility in partnership with the European Investment Bank (EIB) and the European Union to support cocoa processing and dairy production in Nigeria.

The bank said about 70% of the facility would be directed to the cocoa and dairy value chains, sectors considered critical for job creation, export growth, and foreign exchange retention.