By our Reporter
The Bank of Industry (BOI) has commended President Bola Ahmed Tinubu for his leadership and 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.
The BOI Chief Executive Officer, Olasupo Olusi, said the strong investor response demonstrated confidence in 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 successful transaction partly to President Tinubu’s support, particularly his executive approval of incentives designed to encourage 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.
According to Olusi, the President’s intervention provided leverage and sent a positive signal to investors, adding that the development was further evidence of the administration’s support for Nigeria’s productive sector.
He said the ultimate objective of the transaction was to translate investor confidence into increased long-term financing for Nigerian enterprises, with potential benefits for industrial expansion, job creation, domestic value chains and economic diversification.
Olusi also disclosed that the ₦100 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.
The bank said the transaction would broaden its funding architecture by complementing its established access to international capital markets with increased mobilisation of long-term domestic capital from institutional investors.
BOI noted that the successful issuance demonstrated the growing capacity of Nigeria’s domestic capital market to channel long-term institutional savings into productive sectors of the economy.
The bank and its transaction advisers, however, said final subscription and allotment figures would not be disclosed at this stage, as final allotment remains subject to approval by the Securities and Exchange Commission and the transaction is still progressing towards completion.
According to BOI, 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.
The bank said these factors indicated sustained institutional appetite for high-quality, long-term domestic assets and reinforced the capacity of the Nigerian capital market to mobilise development-oriented funding at scale.
Proceeds from the bond issuance are expected to enhance BOI’s 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.
The successful transaction, the bank said, marks another milestone in the development of Nigeria’s domestic market for long-term development capital and further strengthens BOI’s position as a credible and repeat capital-markets issuer.
