BOI’s N250bn Bond Oversubscribed in Five Days as Bank Hails Tinubu’s Support

The Bank of Industry (BOI) has praised President Bola Ahmed Tinubu for his support after the bank’s N250 billion Series 1 Fixed Rate Bond was oversubscribed within five working days.

The bond was issued through BOI Financing SPV Plc under the bank’s $1 billion Multi-Currency Instruments Programme, with the strong investor response described by the development finance institution as a vote of confidence in both the bank and Nigeria’s domestic capital market.

BOI Chief Executive Officer, Olasupo Olusi, said the level of demand demonstrated the capacity of Nigeria’s capital market to mobilise long-term funding for productive investment.

According to Olusi, the successful subscription would not have been achieved within five working days without the support of President Tinubu, who approved incentives aimed at encouraging investors to participate in the transaction.

He said the presidential support provided additional leverage and sent a positive signal to 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.

The BOI chief said the ultimate objective of the transaction was to convert investor confidence into increased financing for Nigerian businesses, with the potential to support industrial expansion, job creation, domestic value chains and economic diversification.

Olusi also disclosed that a N100 billion fund approved by President Tinubu for BOI would be used to blend the bond’s pricing and cushion the effect of high interest rates on manufacturers and other customers of the bank.

He said the measure would help BOI provide more affordable long-term financing to businesses operating in priority sectors of the economy.

The bank said proceeds from the bond would strengthen its capacity to provide long-term financing to eligible enterprises, particularly those investing in productive capacity, local value addition and employment creation.

BOI described the transaction as a major expansion of its funding structure, complementing its experience in international capital markets with increased mobilisation of long-term funds from domestic institutional investors.

The institution said the strong demand for the bond demonstrated growing investor appetite for high-quality, long-term domestic assets and showed that Nigeria’s capital market could mobilise development-oriented funding at scale.

However, BOI and its transaction advisers cautioned against disclosing final subscription and allotment figures at this stage.

They explained that the final allotment remains subject to approval by the Securities and Exchange Commission (SEC), while the transaction is still progressing towards completion.

The bank said the immediate significance of the transaction lies in the strength and quality of investor demand, the pricing achieved and the broad range of investors that participated.

The successful issuance is expected to further strengthen BOI’s position as a regular capital-markets issuer and enhance its ability to provide long-term financing for businesses contributing to Nigeria’s economic development.

The development also represents another milestone for Nigeria’s domestic capital market as policymakers seek to deepen local sources of long-term financing for productive investment.