Investors demonstrate keen interest in BOI's N250bn debt securities issuance

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Investors have shown strong appetite for long-term domestic assets as the Bank of Industry Limited successfully closed its maiden N250bn Series 1 Fixed Rate Bond, with the offer oversubscribed.

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The bond was issued through BOI Financing SPV Plc under the bank’s $1bn Multi-Currency Instruments Programme and attracted participation from a broad range of institutional investors.

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Pension fund administrators, banks, development finance institutions, corporates and other institutional investors participated in the transaction. The involvement of major institutional anchors, including the Nigeria Sovereign Investment Authority and the International Finance Corporation, further reinforced investor confidence in the offering.

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The successful transaction provides BOI with an additional avenue to mobilise long-term funding from Nigeria’s domestic capital market, complementing its established access to international funding markets.

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Managing Director and Chief Executive Officer of BOI, Olasupo Olusi, described the strong demand as a vote of confidence in both the bank and the capacity of Nigeria’s domestic capital market to provide long-term financing for productive investment.

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He said the funds would ultimately be deployed to support Nigerian businesses, industrial expansion, job creation, stronger local value chains and economic diversification.

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Olusi also credited President Bola Tinubu’s economic reforms and support for the transaction, saying government incentives approved for the bond helped strengthen investor interest.

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“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,” Olusi said.

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According to him, the incentives provided leverage and sent a positive signal to institutional investors, adding that the President deserved recognition for the outcome.

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Olusi further disclosed that the N100bn fund approved for BOI by the President would be used to blend the bond’s pricing and cushion the impact of high interest rates on manufacturers and other BOI customers.

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“This is further a testament of Mr President’s support for Nigeria’s productive sector,” he said.

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The transaction is significant for BOI as it expands the bank’s funding options and deepens its engagement with domestic institutional investors.

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As Nigeria’s development finance institution, BOI provides long-term financing to businesses involved in the establishment, expansion, modernisation, rehabilitation and diversification of enterprises.

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The bank said proceeds from the bond would strengthen its ability to finance eligible businesses across priority sectors, supporting productive capacity, local value addition, employment generation and economic diversification.

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BOI, however, said final allotment details and specific subscription figures remain subject to regulatory approval and should not yet be disclosed.

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