The Bank of Industry (BOI) has recorded a strong debut in Nigeria’s domestic debt capital market, with its maiden N250 billion fixed-rate bond attracting subscriptions above the amount offered.
The Series 1 bond, issued through BOI Financing SPV Plc under the bank’s $1 billion Multi-Currency Instruments Programme, drew significant interest from institutional investors, underscoring growing confidence in the development finance institution and Nigeria’s domestic capital market.
BOI said proceeds from the issuance would be deployed to expand its long-term financing capacity for businesses in priority sectors, with the objective of supporting industrial expansion, job creation, local value addition and economic diversification.
The investor base comprised pension fund administrators, commercial banks, development finance institutions, corporates and other institutional investors.
The transaction also attracted anchor investments from the Nigeria Sovereign Investment Authority (NSIA) and the International Finance Corporation (IFC), further strengthening the offering and signalling confidence in BOI’s credit profile and development mandate.
Commenting on the outcome, BOI Managing Director and Chief Executive Officer, Olasupo Olusi, said the strong response demonstrated the capacity of Nigeria’s domestic capital market to mobilise substantial long-term funding for productive investment.
According to him, the objective of the transaction is ultimately to channel capital into Nigerian businesses capable of expanding industrial capacity, strengthening local value chains, creating jobs and improving the country’s economic competitiveness.
Olusi also attributed the strong investor demand to policy support from President Bola Tinubu, particularly executive approvals granted to provide incentives for investors.
He disclosed that a N100 billion fund approved for BOI by the President would be deployed to support the bond’s pricing and help cushion borrowing costs for manufacturers and other businesses that access BOI financing.
The bond, which opened for subscription on August 5 and closed on August 11, has a five-year tenor, semi-annual coupon payments and a two-year moratorium on principal repayment before amortising repayments commence.
The issue was priced at a yield range of 17.35 per cent to 17.50 per cent and was arranged by Chapel Hill Denham as the lead issuing house.
BOI said the transaction would broaden its funding base by complementing its access to international capital markets with greater mobilisation of domestic institutional funds.
The bond is expected to be listed on the FMDQ Securities Exchange after completion of the issuance process and the necessary regulatory approvals.
The bank said final subscription and allotment figures would be announced following approval from the Securities and Exchange Commission (SEC).
The successful bond issue comes as BOI continues to expand its long-term financing support for strategic sectors of the Nigerian economy.
In July, the bank announced an €85 million long-term financing facility in partnership with the European Investment Bank and the European Union. About 70 per cent of the facility is expected to support the cocoa and dairy value chains, with the aim of boosting processing, employment, exports and foreign exchange retention.
The latest bond transaction therefore marks a significant step in BOI’s efforts to deepen its domestic funding capacity while providing long-term capital for productive investment across the Nigerian economy.
