Deji Elumoye in Abuja
Bank of Industry Limited (BOI) has hailed President Bola Tinubu for his leadership and support after its N250 billion Series 1 Fixed Rate Bond was oversubscribed within five days.
According to a statement issued on Tuesday by presidential spokesperson, Bayo Onanuga, the bank issued the bond through its BOI Financing SPV Plc under the bank’s $1 billion Multi-Currency Instruments Programme.
Chief Executive Officer of BOI, Olasupo Olusi, said the bond’s oversubscription indicated investors’ confidence in the bank and Nigeria.
Olusi stated, “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. This is further testament to Mr President’s support for Nigeria’s productive sector.”
The BOI CEO said the goal of the transaction was to turn investor confidence into increased financing for Nigerian enterprises, leading to job creation and a healthier economy.
He also said the N100 billion fund approved for the bank by Tinubu would be used to blend the bond’s pricing and cushion the effect of high interest rates for manufacturers and other BOI customers.
“This is further testament to Mr President’s support for Nigeria’s productive sector,” Olusi said.
According to him, the ultimate objective of the transaction is to translate investor confidence into increased financing for Nigerian enterprises, with potential impact on industrial expansion, job creation, domestic value chains and economic competitiveness.
The bank said the transaction represented a significant broadening of its funding architecture, complementing its established track record in international capital markets with deeper mobilisation of long-term capital from domestic institutional investors.
BOI stated that the transaction demonstrated the growing capacity of Nigeria’s domestic capital market to channel long-term institutional savings into productive sectors of the economy.
The bank and its transaction advisers have advised that final subscription and allotment figures should not be disclosed at this stage, as final allotment remains subject to Securities and Exchange Commission approval and the transaction is still progressing towards completion.
The immediate significance of the transaction, BOI said, lied in the strength and quality of investor demand, the pricing achieved, and the breadth of the investor base. These factors point to sustained institutional appetite for high-quality, long-term domestic assets, and reinforce the Nigerian capital market’s capacity to mobilise development-oriented funding at scale.
Proceeds from the issuance will enhance BOI’s capacity to provide long-term financing to eligible enterprises across priority sectors, supporting investments in productive capacity, local value addition, employment creation, and economic diversification.
The successful transaction marks another milestone in developing Nigeria’s domestic market for long-term development capital. It also strengthens BOI’s position as a credible and repeat capital-markets issuer.