The Bank of Industry Limited (BOI) has secured strong investor demand for its ₦250 billion Series 1 Fixed Rate Bond, with the offer oversubscribed within five working days.
The bond was issued through BOI Financing SPV Plc under the bank’s $1 billion Multi-Currency Instruments Programme and is expected to strengthen the institution’s capacity to provide long-term financing to Nigerian businesses.
BOI Chief Executive Officer, Olasupo Olusi, described the strong investor response as a vote of confidence in the bank and Nigeria’s domestic capital market.
According to Olusi, the transaction would not have attracted such significant demand without the support of President Bola Ahmed Tinubu, particularly through executive approvals and incentives designed to encourage investment.
“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,” Olusi said.
He added that the successful bond issue demonstrated the growing ability of the domestic market to mobilise institutional savings for productive sectors of the economy.
Olusi also disclosed that the ₦100 billion fund approved for BOI by the Federal Government would be used to blend the bond’s pricing and cushion the effect of high interest rates on manufacturers and other BOI customers.
The BOI chief said the ultimate objective was to convert investor confidence into increased financing for Nigerian enterprises, supporting industrial expansion, job creation, domestic value chains and economic diversification.
Proceeds from the bond are expected to enhance BOI’s ability to provide long-term funding to eligible businesses across priority sectors.
The bank said the transaction also represents a broadening of its funding base, complementing its established presence in international capital markets with increased mobilisation of long-term domestic capital.
BOI and its transaction advisers, however, cautioned that final subscription and allotment figures should not yet be disclosed, as the final allotment remains subject to approval by the Securities and Exchange Commission (SEC).
The bank said the immediate significance of the transaction lies in the strength and quality of investor demand, the pricing achieved and the breadth of the investor base.
It added that these factors point to sustained institutional appetite for high-quality, long-term domestic assets and demonstrate the capacity of Nigeria’s capital market to mobilise development-oriented funding at scale.
The successful transaction marks another milestone for BOI and Nigeria’s efforts to deepen the domestic market for long-term development capital, while further strengthening the bank’s position as a credible and repeat issuer in the capital market.
BOI Laud Tinubu Over N250bn Series 1 Bond Oversubscription
