The Bank of Industry Limited (BOI) has successfully closed its maiden ₦250 billion Series 1 Fixed Rate Bond, with the offer oversubscribed within five working days. The transaction, issued through BOI Financing SPV Plc under the Bank’s US$1 billion Multi-Currency Instruments Programme, attracted strong demand from a diverse pool of institutional investors, including Pension Fund Administrators, banks, Development Finance Institutions, corporates, and other institutional players. Notable institutional anchors such as the Nigeria Sovereign Investment Authority and the International Finance Corporation further bolstered the deal.
Significance Beyond Capital Mobilisation
For BOI, the successful bond issuance transcends the mere raising of funds. It demonstrates the growing capacity of Nigeria’s domestic financial system to convert institutional savings into long-term funding for businesses and productive economic activity. This milestone underscores the potential of the domestic capital market to finance sustainable development.
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,” he stated.
President Tinubu’s Role and Incentives
Dr. Olusi credited President Bola Ahmed Tinubu for the feat, noting that the strong investor demand was facilitated by the President’s executive approval of various incentives. “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,” Olusi said.
Additionally, the MD/CEO revealed that a ₦100 billion fund approved by President Tinubu for BOI will be used to blend the pricing of the bond and cushion high interest rates for the benefit of manufacturers and other customers. “This is further testament of Mr. President’s support for Nigeria’s productive sector,” Olusi acknowledged.
Strategic Shift in Funding and Impact
The transaction marks an important shift in BOI’s funding strategy. While the Bank has a significant track record in international capital markets, this successful domestic bond provides another avenue for mobilising long-term capital from Nigerian institutional investors. This development is particularly significant given the importance of patient, long-term financing to industrial expansion and enterprise development.
BOI’s mandate focuses on financing the establishment and expansion of enterprises, as well as diversification, modernisation, and rehabilitation of existing businesses. Proceeds from the issuance will enhance its capacity to finance eligible enterprises across priority sectors, potentially supporting 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 not yet be disclosed. For now, the successful close, oversubscription, quality of investors, and competitive pricing achieved provide evidence of strong institutional appetite for BOI and long-term domestic assets. More broadly, the transaction underscores the growing role Nigeria’s capital market can play in financing productive investment and development.
