Bank of Industry Mobilises N250bn Development Bond in Domestic Capital Market as Institutional Demand Spikes

The Bank of Industry (BoI) has successfully issued a Series 1 Fixed Rate Bond worth N250 billion in the domestic capital market, with the offer being oversubscribed within five working days. This signifies a strong investor confidence and the potential of the market to mobilize long-term capital for productive investments. The bond was issued through BoI Financing SPV Plc under the bank's $1 billion Multi-Currency Instruments Programme and attracted a diverse group of investors, including Pension Fund Administrators, banks, Development Finance Institutions, corporates, and other institutional investors.

The Nigerian Sovereign Investment Authority (NSIA) and International Finance Corporation (IFC) provided anchor support, further bolstering investor confidence in BoI's credit quality and growing role in the domestic capital market. BoI Managing Director/Chief Executive Dr. Olasupo Olusi attributed the strong demand to President Bola Tinubu's executive approval of incentives aimed at encouraging investors to participate in the bond.

A N100 billion fund approved by Tinubu will be used to blend the pricing of the bond and alleviate the impact of high interest rates on manufacturers and other BoI customers. The proceeds from the issuance will bolster BoI's capacity to provide long-term financing to eligible enterprises in priority sectors, with a focus on productive capacity, local value addition, employment creation, and economic diversification.

This landmark achievement highlights Nigeria's domestic capital market's potential to channel long-term institutional savings into productive sectors, ultimately contributing to industrial expansion, job creation, domestic value chains, and economic competitiveness.