The Bank of Industry (BOI) has successfully completed its debut domestic bond issuance, with its N250 billion Series 1 Fixed Rate Bond closing oversubscribed after attracting strong demand from institutional investors.
The transaction, which closed after five working days, represents BOI’s first major foray into Nigeria’s domestic debt capital market and provides the development finance institution with a new avenue for raising long-term naira funding.
The bond was issued through BOI Financing SPV Plc under the bank’s US$1 billion Multi-Currency Instruments Programme. The offer attracted participation from a broad range of institutional investors, including pension fund administrators, banks, development finance institutions, corporates and other investors.
The Nigeria Sovereign Investment Authority (NSIA) and the International Finance Corporation (IFC) were among the institutional anchors for the transaction, according to BOI.BOI Managing Director and Chief Executive Officer, Olasupo Olusi, said the strength of demand demonstrated investor confidence in both the bank and the ability of Nigeria’s domestic capital market to mobilise long-term financing for productive investment.
He said the successful transaction showed that the financial system could increasingly convert institutional savings into long-term capital capable of supporting businesses and economic expansion.
The bank said the funds raised would support financing for Nigerian businesses, particularly initiatives focused on industrial expansion, local value addition, job creation and economic diversification.
The transaction also marks a shift in BOI’s funding strategy as the institution seeks to broaden its access to domestic institutional capital. BOI is Nigeria’s oldest and largest development finance institution, with a mandate to provide long-term financing and advisory support to enterprises across the economy.
Olusi also credited President Bola Tinubu’s approval of incentives aimed at encouraging investor participation. According to BOI, the President approved a N100 billion fund to help blend the bond’s pricing and cushion the impact of high interest rates on manufacturers and other BOI customers.
The strong response comes as Nigerian businesses continue to face elevated financing costs, making access to longer-term funding particularly important for investment in productive sectors.
However, BOI has not yet released the exact level of oversubscription. The bank said final subscription and allotment figures would be disclosed after the necessary regulatory approval.
The successful debut nevertheless gives BOI a stronger presence in Nigeria’s domestic capital market while providing institutional investors with another avenue for exposure to long-term naira-denominated assets.
For BOI, the immediate test will be how effectively the additional funding is converted into affordable financing for businesses and productive investment across the Nigerian economy.
