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The Bank of Industry has opened subscriptions for a ₦250bn five-year fixed-rate bond to raise long-term funding for businesses across key sectors of the Nigerian economy.
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The bond, which offers a yield of between 17.35% and 17.50%, will finance projects in agriculture, healthcare, technology, energy, oil and gas, solid minerals and other priority sectors.
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BOI says the funding will support productive capacity, job creation, local value addition and exports as businesses continue to grapple with elevated financing costs.
August 07, (THEWILL) — The Bank of Industry, through BOI Financing SPV Plc, has opened subscriptions for an inaugural ₦250bn Series 1 Fixed Rate Bond to raise long-term capital for businesses and projects across Nigeria.
The five-year bond is being issued under BOI’s $1bn multi-currency instruments programme, with subscriptions opening on August 5 and closing on August 11.
Chapel Hill Denham is acting as the lead issuing house, while the bond will be listed on the FMDQ Securities Exchange.
The offer carries a yield range of 17.35 percent to 17.50 percent, with interest payable semi-annually. Principal repayment will begin in the third year through equal semi-annual instalments until maturity in 2031.
The financing comes as Nigerian businesses continue to contend with high borrowing costs and limited access to affordable medium- and long-term capital.
Priority sectors to receive funding
According to the offer document, proceeds from the bond will be used to finance eligible businesses and projects across several priority sectors.
These include agriculture and food processing, healthcare, engineering and technology, renewable energy, petrochemicals, oil and gas, creative industries and solid minerals.
BOI said the funding is expected to improve access to medium- and long-term financing while helping businesses expand productive capacity and preserve and create jobs.
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The lender also expects the financing to deepen local value addition, promote import substitution, increase exports and strengthen domestic supply chains.
The focus on productive sectors means the funding is expected to support businesses whose expansion can generate wider economic activity rather than simply provide short-term liquidity.
BOI highlights strong financial position
The development finance institution said it has provided funding to more than one million businesses across Nigeria and disbursed over ₦1.27 trillion between 2023 and 2025.
BOI currently operates across 34 states and the Federal Capital Territory and is jointly owned by the Ministry of Finance Incorporated and the Central Bank of Nigeria.
The bank reported strong growth in its financial performance, with gross earnings recording a 36 percent compound annual growth rate between 2021 and 2025.
Interest income increased by 64 percent to ₦884 billion in 2025 from ₦538 billion a year earlier, while its capital adequacy ratio stood at 39 percent, significantly above the regulatory minimum of 10 percent.
Its non-performing loan ratio was 1.7 percent, below the Central Bank of Nigeria’s prudential limit of 5 percent.
The bond has received AAA ratings from Agusto & Co. and Intelligence Africa, reflecting the issuer’s capitalisation, profitability, liquidity and ownership structure.
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Bond open to qualified investors
The offer is available to institutional and qualified investors, with a minimum subscription of ₦5 million and additional investments in multiples of ₦1 million.
The bond is also exempt from tax, potentially improving its attractiveness to investors seeking fixed income returns.
For BOI, the successful mobilisation of the funds will provide additional capacity to support businesses requiring longer-term financing, while investors will earn fixed semi-annual returns over the life of the instrument.
The initiative comes as businesses continue to seek alternatives to expensive commercial borrowing and highlights the growing role of development finance institutions in providing capital for Nigeria’s productive sectors.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
