The Bank of Industry (BOI) has credited President Bola Ahmed Tinubu’s leadership and support for the successful oversubscription of its N250 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.
Speaking on the transaction, BOI Chief Executive Officer, Olasupo Olusi, said the strong investor response reflected confidence in both the bank and Nigeria’s domestic capital market.
“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.
He attributed the strong demand for the bond to the support provided by President Tinubu, including executive approval for incentives aimed at encouraging investors.
“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,” he said.
“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.”
Olusi said the ultimate objective of the transaction was to convert investor confidence into increased financing for Nigerian businesses, with the potential to drive industrial expansion, job creation, domestic value chains and economic competitiveness.
He added that the N100 billion fund approved for BOI by President Tinubu would be used to blend the bond’s pricing and cushion the impact of high interest rates on manufacturers and other BOI customers.
“This is further testament to Mr President’s support for Nigeria’s productive sector,” Olusi said.
According to the bank, proceeds from the bond issuance will strengthen its 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.
BOI said the transaction also represents a significant broadening of its funding architecture, complementing its established track record in international capital markets with increased mobilisation of long-term capital from domestic institutional investors.
The bank said the transaction demonstrated the growing capacity of Nigeria’s domestic capital market to channel long-term institutional savings into productive sectors of the economy.
BOI and its transaction advisers, however, said final subscription and allotment figures should not be disclosed at this stage, as final allotment remains subject to the approval of the Securities and Exchange Commission and 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 breadth of the investor base.
According to BOI, “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.”
The successful transaction marks another milestone in the development of Nigeria’s domestic market for long-term development capital, while further strengthening BOI’s position as a credible and repeat capital-markets issuer.
Boluwatife Enome
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