Nigeria’s Bank of Industry Sells Out ₦250B Bond in Just 5 Days
ABUJA, Nigeria—The Bank of Industry (BOI) has successfully closed its ₦250 billion Series 1 Fixed Rate Bond, achieving complete oversubscription within just five working days.
The bond was issued via BOI Financing SPV Plc under the bank’s $1 billion Multi-Currency Instruments Programme.
BOI management credited the overwhelming investor response to the strategic leadership and regulatory incentives approved by President Bola Tinubu.
Investor Confidence High in Nigerian Capital Markets
BOI Chief Executive Officer, Olasupo Olusi, stated that the aggressive investor demand serves as a major vote of confidence in Nigeria’s financial ecosystem. “This successful transaction demonstrates the growing capacity of Nigeria’s domestic capital market to mobilise long-term funds for productive investment,” Olusi noted.
The final allotment figures will now await Securities and Exchange Commission (SEC) approval.
₦100B Subsidy to Cushion Manufacturing Costs
To protect local businesses from soaring borrowing costs, President Tinubu previously approved a ₦100 billion fund for the BOI. Olusi disclosed that these funds will be blended with the new bond proceeds. This strategic pricing mix will directly cushion the impact of high interest rates for manufacturers and industrial sectors.
The capital injection will target critical economic milestones, including direct financing for long-term loans to eligible priority enterprises. Also to be prioritized is the value chain to strengthen local manufacturing and raw material processing.
The expectation is that these will lead to increased job creation, expanding operational capacities to drive nationwide employment, diversification, and reduction of economic dependency on oil revenues.
Expanding Domestic Funding Architecture
Historically reliant on international capital markets, the BOI’s domestic breakthrough is also expected to significantly broaden its financial architecture. By tapping deep into local institutional capital, the bank is seeking to establish itself as a highly credible, repeat issuer in Nigeria’s home market.
