The Bank of Industry (BOI) has credited President Bola Tinubu’s administration with helping drive strong investor interest in its N250 billion Series 1 Fixed Rate Bond, which was fully oversubscribed within just five working days.
The bank said the impressive response from investors shows growing confidence in BOI and Nigeria’s domestic capital market. The bond was issued through BOI Financing SPV Plc under the bank’s $1 billion Multi-Currency Instruments Programme.
BOI Managing Director and Chief Executive Officer, Olasupo Olusi, said the speed at which investors responded would not have been possible without the support and incentives approved by President Tinubu.
According to Olusi, the strong demand represents more than confidence in the bank. He said it also demonstrates that Nigeria’s local capital market has the ability to raise substantial long-term funds for businesses and productive activities.
He explained that government-backed incentives helped make the investment more attractive and gave investors greater confidence in the transaction.
The bank also revealed that a separate N100 billion fund approved by the President would be used to support the bond and reduce the effect of high interest rates on manufacturers and other businesses that borrow from BOI.
This intervention is expected to make financing more affordable for companies seeking funds to expand their operations, purchase equipment, increase production and create jobs.
BOI said the main goal is to turn the strong investor interest into real economic activity by increasing access to long-term financing for Nigerian businesses.
The bank expects the funds raised to support companies operating in key areas of the economy. These include manufacturing, agriculture, infrastructure and other productive sectors capable of creating jobs and strengthening local supply chains.
The successful bond also marks an important step in BOI’s efforts to expand its sources of funding. While the institution has previously raised money from international markets, the latest transaction allows it to attract more long-term funds from domestic institutional investors.
BOI said the response from investors shows that there is growing appetite for reliable, long-term investment opportunities within Nigeria.
However, the bank noted that final subscription and allotment figures would not be released yet because the transaction is still subject to approval by the Securities and Exchange Commission.
For BOI, the success of the N250 billion bond goes beyond raising money. It could strengthen the bank’s ability to finance businesses, support industrial expansion and contribute to job creation.
The development also highlights the growing role of Nigeria’s domestic capital market in funding economic development.
If the funds are effectively deployed, the transaction could provide Nigerian businesses with more access to long-term capital at a time when high borrowing costs remain a major challenge for many companies.
Overall, BOI described the bond as a major milestone that reinforces its position as one of Nigeria’s key development finance institutions and a trusted participant in the country’s capital market.
