BOI hails Tinubu as N250bn bond oversubscribed in five days

Mercy Iheoma Ihedigbo

Bank of Industry Limited (BOI) has commended President Bola Ahmed Tinubu for his leadership and support following the strong investor response to its ₦250 billion Series 1 Fixed Rate Bond, which 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, in a transaction the development finance institution described as a significant milestone in the mobilisation of long-term domestic capital for productive investment.

The BOI Chief Executive Officer, Olasupo Olusi, said the strong demand for the instrument represented a vote of confidence not only in the bank but also in Nigeria’s domestic capital market and the country’s economic prospects.

According to Olusi, the response from investors demonstrates the growing capacity of the Nigerian capital market to mobilise long-term funds for productive sectors of the economy.

“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 the Special Adviser to the President on Information and Strategy, Bayo Onanuga, he attributed the successful reception of the bond partly to the support received from President Tinubu, particularly the executive approval granted for incentives aimed at encouraging investors to participate in the transaction.

“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,” the BOI chief executive said.

He added that the presidential intervention provided leverage and sent a positive signal to investors.

“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 BOI CEO explained that the ultimate objective of the transaction was not merely to raise funds but to convert investor confidence into increased financing for Nigerian businesses.

He said the proceeds would strengthen the bank’s ability to provide long-term financing to eligible enterprises operating across priority sectors, with the potential to stimulate industrial expansion, create employment opportunities, deepen domestic value chains and improve Nigeria’s economic competitiveness.

Olusi also disclosed that the ₦100 billion fund approved for BOI by President Tinubu would be deployed to blend the pricing of the bond and cushion the effect of high interest rates on manufacturers and other customers of the bank.

The measure, according to the bank, is expected to enhance access to financing for businesses that require long-term capital to expand their productive capacity.

The development finance institution said the transaction would also broaden its funding architecture by complementing its established presence in international capital markets with increased mobilisation of long-term capital from domestic institutional investors.

BOI noted that the successful bond offering demonstrated the growing ability of Nigeria’s domestic capital market to channel institutional savings into sectors capable of generating economic value and supporting national development.

The bank said the immediate significance of the transaction was reflected 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 capacity of the Nigerian capital market to mobilise development-oriented funding on a significant scale.

The bank further explained that the funds raised would enhance its capacity to support eligible enterprises in priority areas, including productive investments, local value addition, employment creation and economic diversification.

The transaction, it said, represents another important step in the development of Nigeria’s domestic market for long-term development capital and further strengthens BOI’s position as a credible and repeat issuer in the capital market.

However, BOI and its transaction advisers cautioned against the disclosure of final subscription and allotment figures at this stage, explaining that the final allotment remains subject to approval by the Securities and Exchange Commission (SEC).

The bank said the transaction was still progressing towards completion and that the strength of investor participation should therefore be considered within the context of the ongoing regulatory and completion process.

The successful response to the ₦250 billion bond comes as BOI continues to position itself as a major financing institution for Nigeria’s productive sector, particularly businesses seeking long-term capital for expansion and investment.

For the bank, the transaction provides an opportunity to deepen its relationship with domestic institutional investors while expanding the pool of funds available to Nigerian enterprises.

The development finance institution maintained that translating investor confidence into actual financing for businesses would be central to the broader impact of the transaction.

Such financing, BOI said, could support industrial expansion, strengthen local supply and value chains, create jobs and contribute to the diversification and competitiveness of the Nigerian economy.