The Bank of Industry (BOI) has recorded strong demand for its maiden ₦250 billion Series 1 Fixed Rate Bond, with the offer becoming oversubscribed within five working days in a development the bank says reflects growing confidence in Nigeria’s domestic capital market and its economic outlook.
Bank of Industry
The bond was issued through BOI Financing SPV Plc under the bank’s $1 billion Multi-Currency Instruments Programme and attracted significant interest from institutional investors, including pension fund administrators, commercial banks, development finance institutions, corporates and other investors.
The Nigeria Sovereign Investment Authority (NSIA) and the International Finance Corporation (IFC) were among the institutional anchors for the transaction.
BOI Managing Director and Chief Executive Officer, Olasupo Olusi, described the investor response as a strong endorsement of the bank and the capacity of Nigeria’s domestic capital market to mobilise long-term funds for productive investment.
According to Olusi, the demand demonstrates that institutional savings can increasingly be converted into long-term financing for Nigerian businesses, with the potential to support industrial expansion, create jobs, strengthen local value chains and improve the competitiveness of the economy.
The BOI chief executive also credited President Bola Ahmed Tinubu’s support and executive approval of incentives for helping to attract investors to the bond.
Olusi said the bank would not have achieved the level of demand recorded within five working days without the incentives approved by the President, describing the intervention as a positive signal to investors.
He further disclosed that President Tinubu had approved a ₦100 billion fund for BOI to help blend the bond’s pricing and cushion the effect of high interest rates on manufacturers and other BOI customers.
The proceeds from the bond are expected to expand BOI’s capacity to provide long-term financing to businesses across priority sectors of the economy, supporting enterprise expansion, modernisation, local value addition, employment and economic diversification.
The successful transaction also represents a significant step in BOI’s funding strategy, giving the development finance institution a stronger domestic avenue for mobilising long-term institutional capital alongside its established access to international markets.
BOI said the final subscription and allotment figures will be disclosed after the necessary regulatory approval.
The oversubscription comes as Nigeria seeks to deepen its domestic capital market and increase access to patient financing for productive sectors, with the BOI transaction providing a fresh indication of institutional appetite for long-term investment instruments linked to economic development.
