Confidence in the Bank of Industry (BoI) and Nigeria’s domestic capital market has received a boost following the successful close of the bank’s maiden N250 billion Series 1 Fixed Rate Bond, which was oversubscribed by investors.
The landmark transaction was issued through BoI Financing SPV Plc under the bank’s $1 billion Multi-Currency Instruments Programme, following strong demand from a diverse group of institutional investors.
Participants in the offer included Pension Fund Administrators, banks, Development Finance Institutions, corporates and other institutional investors.
Strong institutional anchors, including the Nigeria Sovereign Investment Authority and the International Finance Corporation, further strengthened the transaction.
For BoI, the significance of the transaction extends beyond the successful mobilisation of capital, as it demonstrates the growing capacity of Nigeria’s domestic financial system to convert institutional savings into long-term funding for businesses and productive economic activities.
Commenting on the outcome, BoI Managing Director and Chief Executive Officer, Dr Olasupo Olusi, described the investor response as a strong endorsement of the bank and the capacity of 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,” Olusi said.
He said BoI would channel the confidence demonstrated by investors into financing for Nigerian businesses, supporting industrial expansion, job creation, stronger domestic value chains and a more competitive economy.
Olusi also credited President Bola Ahmed Tinubu’s intervention for helping to attract strong investor demand for the bond.
“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,” he said.
According to him, the presidential intervention served as leverage and a positive signal to investors.
“This became a leverage and a positive signal to discerning investors. Mr. President deserves the honour for this feat,” he added.
Olusi further disclosed that a N100 billion fund approved for BoI by President Tinubu would be used to blend the pricing of the bond and cushion the impact of high interest rates for manufacturers and other customers of the bank.
“This is further testament of Mr. President’s support for Nigeria’s productive sector,” he said.
The transaction also represents a significant development in BoI’s funding strategy.
Although the bank has established a strong presence in international capital markets, the successful domestic bond provides an additional avenue for mobilising long-term capital from Nigerian institutional investors.
The 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 the diversification, modernisation and rehabilitation of existing businesses.
The bank said proceeds from the bond issuance would strengthen its capacity to finance eligible enterprises across priority sectors, with the potential to increase productive capacity, promote local value addition, support employment and accelerate economic diversification.
BoI, however, said final allotment and detailed subscription figures remained subject to regulatory approval and should therefore not yet be disclosed.
The successful close of the transaction, its oversubscription, the quality of participating investors and the competitive pricing achieved point to strong institutional appetite for BoI securities and long-term domestic assets.
More broadly, the transaction highlights the increasing role Nigeria’s capital market can play in mobilising domestic savings and directing long-term financing towards productive investment and economic development.
BoI remains Nigeria’s leading development finance institution, providing long-term financing and advisory support to enterprises across key sectors of the economy.
Its mandate is centred on accelerating industrial development, supporting productive enterprises and promoting sustainable and inclusive economic growth.
The bank’s strategy is underpinned by its extensive domestic footprint, international partnerships and track record in supporting enterprises and large-scale development projects.
