- Offer oversubscribed within five days in testament to growing investor confidence
- Olasupo Olusi: strong investor response signals potential of market to mobilise long-term capital
- Declares Tinubu’s executive approval of investor incentives spurred strong demand; N100bn presidential support to cushion bond pricing, benefit manufacturers
James Emejo in Abuja
Bank of Industry Limited (BoI) has secured strong institutional demand for its maiden N250 billion Series 1 Fixed Rate Bond, with the offer oversubscribed within five working days.
The performance demonstrated the capacity of the domestic capital market to mobilise long-term funding for productive investment in the country.
The bond, issued through BoI Financing SPV Plc under the bank’s $1 billion Multi-Currency Instruments Programme, attracted a diversified pool of investors, including Pension Fund Administrators (PFAs), banks, Development Finance Institutions (DFIs), corporates, and other institutional investors, according to a statement by BoI.
The transaction also received anchor support from the Nigeria Sovereign Investment Authority (NSIA) and International Finance Corporation (IFC), underscoring the confidence of major institutional investors in the bank’s credit quality and its growing role in the domestic capital market.
The development finance institution, however, pointed out that the final subscription and allotment figures would not be disclosed yet, as the allotment remained subject to approval by Securities and Exchange Commission (SEC) and the transaction was still progressing towards completion.
Commenting on the milestone, Managing Director/Chief Executive, BoI, Dr. Olasupo Olusi, said the outcome demonstrated the ability of the domestic market to support development financing on a large scale.
Olusi attributed the strong demand, in part, to interventions by President Bola Tinubu, particularly executive approval for incentives designed to encourage investors to participate in the bond.
He said, “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.
“As a development finance institution, we could not have received the strong investor demand for the bond in five working days without the support of President Tinubu who gave his executive approval for various incentives to encourage investors.
“This became a leverage and a positive signal to discerning investors. Mr. President deserves the honour for this feat.”
Olusi disclosed that a N100 billion fund approved for the bank by Tinubu would be deployed to blend the pricing of the bond and cushion the effect of high interest rates for manufacturers and other BoI customers.
“This is further testament of Mr. President’s support for Nigeria’s productive sector,” he said.
The bank said the immediate significance of the offer was the strength and quality of demand, the relatively low pricing achieved, and the breadth of the investor base.
Having established a track record in international capital markets, the bank said the bond would complement its external funding channels with greater mobilisation of funds from domestic institutional investors.
BoI said proceeds from the issuance would enhance its capacity to provide long-term financing to eligible enterprises across priority sectors, with a focus on productive capacity, local value addition, employment creation and economic diversification.
Olusi said the ultimate objective was to convert the confidence demonstrated by investors into greater financing for Nigerian businesses, with potential implications for industrial expansion, job creation, domestic value chains, and economic competitiveness.
Beyond the immediate financing, the bank said the successful offer represented a broadening of its funding architecture and another step in the development of the domestic market for long-term development capital.
The strong participation of PFAs, banks, DFIs, corporates, and other institutional investors, according to BoI, points to sustained appetite for high-quality long-term domestic assets.
The participation of NSIA and IFC, as anchor investors, also strengthened the institutional depth of the transaction, while reinforcing BoI’s position as a credible domestic capital-market issuer.
The bank said the transaction should be viewed not merely as a successful bond issue but as evidence of the potential for Nigeria’s domestic capital market to channel long-term institutional savings into productive sectors.
BoI maintained that the bond would strengthen its credentials as a repeat capital-markets issuer while providing additional capacity to finance the establishment, expansion, diversification, modernisation, and rehabilitation of enterprises.
It stressed that its broader financing mandate remained focused on industrial development, import substitution, poverty alleviation, job creation, and economic diversification.