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BOI’s ₦250 billion Series 1 fixed-rate bond was oversubscribed within five working days.
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The bank says strong demand reflects investor confidence in BOI and Nigeria’s domestic capital market.
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A ₦100 billion government-approved fund will help BOI cushion borrowing costs for manufacturers and other customers.
August 18, (THEWILL) — The Bank of Industry Limited (BOI) has recorded strong investor demand for its ₦250 billion Series 1 Fixed Rate Bond, with the offer becoming oversubscribed within five working days.
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 response demonstrated investor confidence in the bank and the ability of Nigeria’s domestic capital market to mobilise long-term funding for productive investment.
Investors Back BOI’s Funding Strategy
Olusi said the speed of the subscription showed that institutional investors remained willing to commit capital to credible long-term instruments despite prevailing market conditions.
“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”, he said.
He also credited President Bola Ahmed Tinubu’s support for the transaction, particularly executive approval for incentives designed to encourage investor participation.
According to Olusi, the government-backed incentives provided an additional positive signal to investors and helped strengthen the attractiveness of the transaction.
However, BOI and its transaction advisers cautioned that final subscription and allotment figures should not yet be disclosed, as the process remains subject to approval by the Securities and Exchange Commission (SEC).
The bank said the immediate significance of the transaction therefore lies in the strength of investor demand, the pricing achieved and the breadth of the investor base.
₦100bn Support to Cushion Borrowing Costs
Beyond strengthening BOI’s funding base, the transaction is expected to support the bank’s ability to provide longer-term financing to Nigerian businesses.
Olusi said the ₦100 billion fund approved for BOI by President Tinubu would be used alongside the bond proceeds to help moderate the impact of high interest rates on manufacturers and other BOI customers.
The arrangement is particularly significant for businesses that require longer-term financing to expand production, purchase equipment and invest in new capacity.
By blending the approved ₦100 billion support with funds raised from the bond, BOI aims to provide financing at more manageable costs while maintaining access to long-term capital.
The bank said proceeds from the issuance would strengthen its capacity to finance eligible enterprises across priority sectors, including investments in productive capacity, local value addition, employment creation and economic diversification.
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What the Bond Means for Nigeria’s Capital Market
The successful offer also highlights the growing role of Nigeria’s domestic capital market in financing large-scale development projects.
BOI said the transaction broadens its funding architecture by complementing its established participation in international capital markets with greater mobilisation of long-term domestic institutional savings.
Strong demand for the bond suggests that institutional investors continue to seek high-quality fixed-income assets capable of providing attractive returns while supporting the real economy.
For BOI, the successful issuance also reinforces its position as a repeat capital-markets issuer and gives the development finance institution additional capacity to support businesses beyond traditional government funding channels.
The ultimate test, however, will be how effectively the funds translate into cheaper and longer-term credit for businesses.
If deployed as intended, the additional financing could support industrial expansion, strengthen domestic value chains, create jobs and improve the competitiveness of Nigerian enterprises.
The transaction therefore represents more than a successful bond sale for BOI. It also provides another indication of the capacity of Nigeria’s domestic market to mobilise institutional capital for productive investment at scale.
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.
