Nume Ekeghe
Rand Merchant Bank (RMB) Nigeria has acted as Joint Issuing House on the Bank of Industry’s (BOI) N274.18 billion five-year fixed-rate domestic bond due 2031.
The issuance, which was BOI’s inaugural domestic naira-denominated bond, was the largest debt capital markets transaction by a development finance institution (DFI) in Nigeria, based on publicly available market data.
BOI had initially targeted N250 billion but increased the offer to N274.18 billion following strong demand from investors.
The bond attracted participation from pension fund administrators, banks, insurance companies, asset managers, development finance institutions and other institutional investors.
According to RMB, the strong subscription underscored investor confidence in BOI’s mandate, financial strength and role in supporting industrial and economic development.
The transaction also highlighted the capacity of Nigeria’s domestic capital market to mobilise long-term funding for large-scale financing requirements.
Commenting on the transaction, Executive Director and Head of Investment Banking, Broader Africa, RMB Nigeria, Chidi Iwuchukwu, said the issuance demonstrated the ability of Nigeria’s capital markets to mobilise long-term capital at scale.
“This transaction demonstrates the ability of Nigeria’s capital markets to mobilise long-term capital at scale,” Iwuchukwu said.
He added: “BOI plays an important role in advancing industrialisation, enterprise growth, and job creation. We are pleased to have partnered with the Bank on this issuance and remain focused on delivering financing solutions that support sustainable economic growth in Nigeria and across the broader African continent.”
Also speaking, Head of Debt Capital Markets, RMB Nigeria, Laju Atake, said supporting inaugural issuers and significant capital market transactions remained a key strength of the bank’s debt capital markets franchise.
“Over the past nine months, we have advised five distinct issuers on their debut debt capital markets transactions in Nigeria,” Atake said.
She added that BOI’s bond issuance reflected the continued development of Nigeria’s capital markets and the importance of efficient access to long-term capital for leading institutions.
RMB had previously acted as Financial Adviser to BOI on its inaugural Eurobond issuance and supported the establishment of its domestic bond programme.
The bank expressed appreciation to the Securities and Exchange Commission(SEC), Central Bank of Nigeria(CBN), professional advisers, transaction parties, investors and other market participants for their contributions to the successful execution of the transaction.