The Bank of Industry (BOI) has commended President Bola Ahmed Tinubu for his support following the oversubscription of its ₦250 billion Series 1 Fixed Rate Bond within five working days.
The bond was issued through BOI Financing SPV Plc under the bank’s $1 billion Multi-Currency Instruments Programme, marking a significant step in the bank’s efforts to deepen its access to long-term domestic capital.
BOI Chief Executive Officer, Olasupo Olusi, said the strong investor response demonstrated growing confidence in both the development finance institution and Nigeria’s domestic capital market.
He attributed the successful offering partly to incentives approved by President Tinubu to encourage investment, saying the measures provided a positive signal to institutional investors.
“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,” Olusi said.
According to him, the bank would not have secured such strong demand within five working days without the support of the President and the executive approval granted for various investment incentives.
Olusi said the successful transaction was not an end in itself but a means of expanding access to affordable, long-term financing for Nigerian businesses.
He explained that the proceeds would strengthen BOI’s capacity to finance enterprises in priority sectors, with the potential to support industrial expansion, local value addition, job creation, economic diversification and stronger domestic supply chains.
The BOI chief executive also disclosed that the ₦100 billion fund approved for the bank by President Tinubu would be deployed to blend the bond’s pricing and cushion the impact of high interest rates on manufacturers and other BOI customers.
He said the measure would help the bank provide more favourable financing conditions to businesses operating in productive sectors of the economy.
BOI said the transaction also represented a broadening of its funding structure, complementing its experience in international capital markets with increased mobilisation of long-term funds from domestic institutional investors.
The bank described the investor response as evidence of sustained appetite for quality long-term assets and a demonstration of the Nigerian capital market’s growing ability to mobilise development-oriented financing at scale.
However, BOI and its transaction advisers cautioned that final subscription and allotment figures should not yet be disclosed because the allotment remains subject to approval by the Securities and Exchange Commission (SEC).
They said the immediate significance of the transaction lay in the strength and quality of investor demand, the pricing achieved and the breadth of the investor base.
The successful issuance further strengthens BOI’s position as a repeat issuer in Nigeria’s capital market and underscores its role in mobilising long-term funding for productive investment.
The transaction is expected to enhance financing for eligible Nigerian enterprises and support the government’s broader efforts to expand productive capacity and promote sustainable economic growth.
