Confidence in the Bank of Industry Limited (BOI) and the ability of Nigeria’s domestic capital market to finance long-term economic development received a significant boost as BOI’s maiden ₦250 billion Series 1 Fixed Rate Bond closed oversubscribed.
The landmark transaction was issued through BOI Financing SPV Plc under the Bank’s US$1 billion Multi-Currency Instruments Programme, following strong demand from a diverse pool of institutional investors.
Pension Fund Administrators, banks, Development Finance Institutions, corporates and other institutional investors participated in the offer, while strong institutional anchors, including the Nigeria Sovereign Investment Authority further strengthened the transaction.
For BOI, the significance of the transaction goes beyond the successful mobilisation of capital. It demonstrates growing capacity within Nigeria’s domestic financial system to convert institutional savings into long-term funding for businesses and productive economic activity.
Commenting on the outcome, BOI Managing Director/Chief Executive Officer, Dr. Olasupo Olusi, said the investor response was a strong endorsement of the Bank and the domestic capital market.
“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.”
According to him, BOI would ultimately channel the confidence demonstrated by investors into financing for Nigerian businesses, supporting industrial expansion, job creation, stronger domestic value chains and a more competitive economy.
Speaking further on the feat, Olusi praised President Bola Ahmed Tinubu for his intervention, saying, “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. Mr. President deserves the honour for this feat”.
The MD/CEO also notes that a 100 billion fund approved for BOI by President Tinubu will be used to blend the pricing of the bond and cushion the high interest rates for the benefit of manufacturers and other customers of BOI. “This is further a testament of Mr President’s support for Nigeria’s productive sector”, Olusi acknowledges.
The transaction also marks an important shift in BOI’s funding strategy. While the Bank has established a significant track record in international capital markets, the successful domestic bond provides another avenue for mobilising long-term capital from Nigerian institutional investors.
The development is particularly significant given the importance of patient, long-term financing to industrial expansion and enterprise development. BOI’s mandate is focused on financing the establishment and expansion of enterprises, as well as diversification, modernisation and rehabilitation of existing businesses.
BOI said proceeds from the issuance would enhance its capacity to finance eligible enterprises across priority sectors, with the potential to support productive capacity, local value addition, employment and economic diversification.
The Bank cautioned that final allotment and detailed subscription figures remain subject to regulatory approval and should therefore not yet be disclosed.
For now, the successful close, oversubscription, the quality of investors and the competitive pricing achieved provide evidence of strong institutional appetite for BOI and for long-term domestic assets. More broadly, the transaction underscores the growing role Nigeria’s capital market can play in financing productive investment and development.
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About Bank of Industry
Bank of Industry Limited is Nigeria’s leading development finance institution, providing long-term financing and advisory support to enterprises across key sectors of the Nigerian economy. The Bank’s mandate is centred on accelerating industrial development, supporting productive enterprises and promoting sustainable and inclusive economic growth.
For further information, please refer to the Bank’s website: https://www.boi.ng/ or contact:
Theodora N. AMECHI, Divisional Head, Public Relations: 0201 271 5070 Ext: 2887
