The Bank of Industry (BOI) has successfully closed its inaugural ₦250 billion Series 1 Fixed-Rate Bond issue after achieving full oversubscription within five working days.
Nigeria’s Bank of Industry (BoI) has secure a major vote of confidence from institutional investors, with its first N250 billion Series 1 Fixed Rate Bond oversubscribed in just five days. The strong response shows that the domestic capital market has plenty of appetite to fund long-term development projects.
Issued through BoI Financing SPV Plc under the bank’s $1 billion Multi-Currency Instruments Programme, the offer drew broad institutional support from Pension Fund Administrators (PFAs), commercial banks, Development Finance Institutions (DFIs) and corporate entities.
Anchor investments from the Nigeria Sovereign Investment Authority (NSIA) and the International Finance Corporation (IFC) provided key support for the deal, reinforcing investor confidence in BoI’s credit standing and expanding capital market footprint.
The bank noted that final subscription and allotment numbers are being withheld pending formal approval from the Securities and Exchange Commission (SEC) as the transaction moves toward completion.
Reflecting on the milestone, BoI Managing Director and CEO Dr. Olasupo Olusi noted that the strong demand highlights the domestic market’s capacity to drive large-scale development financing.
Olusi attributed the strong demand in part to President Bola Tinubu’s intervention, specifically executive approvals for incentives designed to encourage investor participation.
He noted that the overwhelming investor response serves as a strong vote of confidence in both the Bank of Industry and the domestic capital market’s capacity to raise long-term funding for productive investment.
“As a development finance institution, we could not have generated such strong investor demand in just five working days without President Tinubu’s support and executive approval of key investor incentives” Olusi stated.
“This provided key leverage and a positive signal to discerning investors” Olusi noted. “Mr. President deserves recognition for this achievement.”
Olusi revealed that a N100 billion presidential fund will be used to subsidize the bond’s pricing, helping cushion high interest rates for manufacturers and other BoI borrowers.
“This is further testament to Mr. President’s support for Nigeria’s productive sector,” Olusi said. The bank highlighted the deal’s core achievements: robust institutional demand, competitive low pricing and a well-diversified investor base.
Building on its track record in international capital markets, BoI noted that the domestic bond offering will complement its external funding channels by unlocking greater capital from local institutional investors.
BoI stated that proceeds from the bond will expand its capacity to deliver long-term financing to key sectors, driving local value addition, job creation, industrial capacity and broader economic diversification.
Olusi emphasized that the ultimate goal is to convert investor confidence into increased funding for Nigerian enterprises driving industrial growth, job creation, local value addition and broader economic competitiveness.
Beyond the immediate capital raised, BoI highlighted that the transaction expands its overall funding structure while deepening Nigeria’s domestic market for long-term development capital.
According to BoI, strong turnout from pension funds, commercial banks, DFIs and corporate investors signals a deep ongoing demand for high-quality long-term domestic assets.
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Anchor investments from the NSIA and IFC added institutional weight to the transaction, cementing BoI’s reputation as a top-tier issuer in the domestic capital market.
The bank emphasized that the transaction is more than a successful bond issue it serves as proof that Nigeria’s domestic capital market can effectively channel long-term institutional savings into productive economic sectors.
BoI emphasized that the bond solidifies its status as a recurring capital markets issuer while boosting its capacity to fund the setup, expansion, modernization and restructuring of Nigerian enterprises.
BoI stressed that its overall mandate remains focused on driving industrial development, import substitution, poverty alleviation, job creation and economic diversification.
