The Bank of Industry (BOI) has launched its inaugural Series 1 Fixed Rate Bond, targeting up to N250 billion to channel long-term funding into critical sectors of the Nigerian economy. The offer, which opened on August 5 and runs until August 11, 2026, is open to institutional and qualified investors with a minimum investment of N5 million.
Bond Details and Yield
The five-year bond carries a yield of between 17.35% and 17.50%, making it an attractive option for fixed-income investors. It has received AAA ratings from two credit agencies, reflecting its low credit risk. Interest will be paid semi-annually, and principal repayment will begin in the third year through equal semi-annual amortized installments until maturity in 2031.
According to the offer document, the proceeds will be used to finance businesses across sectors including agriculture and food processing, healthcare, engineering and technology, renewable energy, petrochemicals, oil and gas, creative industries, and solid minerals.
Impact on Nigerian Businesses
BOI said the financing is expected to improve access to medium- and long-term funding for Nigerian enterprises. The bank added that the initiative would help businesses expand productive capacity, create and preserve jobs, increase local value addition, support import substitution, boost exports, and strengthen domestic value chains.
The Bank of Industry has provided funding to more than one million businesses across Nigeria and disbursed over N1.27 trillion between 2023 and 2025, according to Punch reports. The institution operates across 34 states and the Federal Capital Territory and is jointly owned by the Ministry of Finance Incorporated and the Central Bank of Nigeria.
Investor Benefits and Tax Exemption
The bond is exempt from tax, which could make it attractive to investors seeking fixed-income investments. The tax exemption means eligible investors can potentially retain the full interest income payable under the bond, subject to applicable investment rules. The issuance comes amid expectations of declining interest rates, which could increase demand for longer-term fixed-income securities offering relatively attractive yields.
BOI said the fundraising would strengthen its ability to provide long-term financing to Nigerian businesses and support investment, job creation, and economic development across priority sectors.
