The Bank of Industry has praised President Bola Tinubu for supporting the successful issuance of its N250bn Series 1 Fixed Rate Bond, which became oversubscribed within five working days.
The bank described the strong investor response as a vote of confidence in BOI and Nigeria’s domestic capital market, particularly its ability to raise long-term funds for productive investment. BOI issued the bond through its BOI Financing SPV Plc under its $1bn Multi-Currency Instruments Programme.
The Special Adviser to the President on Information and Strategy, Bayo Onanuga, disclosed this in a statement issued on Tuesday. The statement was titled, ‘Bank of Industry Lauds President Tinubu over N250bn Series 1 Bond Oversubscription.’ BOI Chief Executive Officer, Olasupo Olusi, said the strong investor demand would not have been possible without the incentives approved by the President. According to Olusi, the support created a positive signal for investors and helped strengthen confidence in the transaction.
He said, “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 added, “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.”
“This became a leverage and a positive signal to discerning investors. Mr President deserves the honour for this feat,” he said.
N100bn fund to support BOI financing
Olusi also disclosed that President Tinubu had approved a separate N100bn fund for the bank. The fund will help BOI blend the bond’s pricing and reduce the impact of high interest rates on manufacturers and other customers. He described the intervention as another sign of the President’s support for Nigeria’s productive sector, especially businesses that need long-term financing.
Olusi said the broader aim was to turn the strong investor demand into increased financing for Nigerian enterprises. Such financing, he said, could support industrial expansion, create jobs and strengthen local value chains while improving economic competitiveness.
BOI expands domestic funding
BOI has an established presence in international capital markets. The latest transaction, however, deepens its efforts to mobilise long-term funds within Nigeria. The bank said the transaction also showed the growing capacity of Nigeria’s domestic capital market to channel institutional savings into productive sectors.
However, BOI and its transaction advisers said they would not release the final subscription and allotment figures yet. The final allotment remains subject to approval by the Securities and Exchange Commission, while the transaction continues towards completion.
According to the bank, the immediate importance of the transaction lies in the level of investor demand, the pricing achieved and the broad investor base. These factors, it said, point to continued institutional interest in high-quality, long-term domestic assets.
Bond proceeds to fund businesses
BOI said proceeds from the bond would increase its capacity to provide long-term financing to eligible enterprises across priority sectors. The funds are expected to support productive capacity, local value addition, job creation and economic diversification.
The bank described the successful transaction as another milestone in the development of Nigeria’s domestic market for long-term development capital. It also said the deal further strengthened its position as a credible and repeat issuer in Nigeria’s capital market.
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