BOI’s ₦250bn Bond Oversubscribed in Five Days as Investors Back Long-Term Industrial Financing

The Bank of Industry (BOI) has announced the oversubscription of its ₦250 billion Series 1 Fixed Rate Bond within five working days, describing the strong investor response as a significant boost for Nigeria’s domestic capital market and long-term development financing.

The bond was issued through BOI Financing SPV Plc under the bank’s $1 billion Multi-Currency Instruments Programme.

BOI Chief Executive Officer, Olasupo Olusi, said the strong demand demonstrated growing investor confidence in the bank and the ability of Nigeria’s domestic capital market to mobilise long-term funds for productive 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 attributed part of the successful outcome to incentives approved by the Federal Government to support the transaction, saying they helped strengthen the proposition for investors.

According to him, the government’s approval of various incentives, including a ₦100 billion fund for BOI, would enable the bank to blend the bond’s pricing and cushion the effect of high interest rates on manufacturers and other customers.

Olusi said the ultimate objective of the bond was to convert strong investor appetite into increased financing for Nigerian businesses, with potential benefits for industrial expansion, job creation, domestic value chains and economic competitiveness.

The bank said proceeds from the issuance would strengthen its capacity to provide long-term financing to eligible enterprises across priority sectors, supporting productive capacity, local value addition, employment generation and economic diversification.

BOI described the transaction as a broadening of its funding architecture, complementing its established presence in international capital markets with increased mobilisation of long-term funds from domestic institutional investors.

The bank said the successful issuance also demonstrated the growing capacity of Nigeria’s domestic capital market to channel institutional savings into productive sectors of the economy.

However, BOI and its transaction advisers cautioned that final subscription and allotment figures should not yet be disclosed because the final allotment remains subject to approval by the Securities and Exchange Commission (SEC), while the transaction is still progressing towards completion.

The bank said the immediate significance of the transaction lay in the strength and quality of investor demand, the pricing achieved, and the breadth of the investor base.

According to BOI, these factors indicate sustained institutional appetite for high-quality, long-term domestic assets and reinforce the capacity of the Nigerian capital market to mobilise development-oriented funding at scale.

The successful transaction, the bank added, represents another milestone in the development of Nigeria’s domestic market for long-term development capital and further strengthens BOI’s position as a credible and repeat issuer in the capital market.