FCMB Capital Markets Supports BOI’s ₦274.19 Billion Development Bond Issuance

FCMB Capital Markets Limited played a pivotal role in the issuance of the Bank of Industry's (BOI) ₦274.19 billion Series 1 Development Bond. This significant sub-sovereign bond issuance, with a five-year, 17.60% fixed-rate and a maturity date in 2031, was facilitated through BOI Financing SPV Plc under the Bank's US$1 billion Multi-Currency Instruments Programme.

Despite an initial target of ₦250 billion, the transaction garnered strong interest from institutional investors, resulting in an oversubscription and a final issuance of ₦274.19 billion, thanks to BOI's exercise of the green shoe option.

FCMB Capital Markets Limited provided essential guidance on crucial elements of the transaction, including the distribution strategy, book-building, and investor engagement. Noteworthy participants included pension fund administrators, banks, development finance institutions, corporates, and other institutional investors. Managing Director of FCMB Capital Markets Limited, Ikechukwu Omeruah, highlighted the transaction as a testament to Nigeria's robust domestic debt capital market and its ability to mobilize substantial funds for development projects.

He emphasized the firm's role in assisting BOI to tap into a wide pool of institutional investors, thereby strengthening the Bank's capacity to finance businesses and initiatives across priority sectors.

The robust investor response underscores confidence in BOI and the increasing demand for instruments that effectively connect institutional capital with Nigeria's key economic priorities. FCMB Capital Markets expressed gratitude to BOI's board and management for the opportunity to collaborate and acknowledged the confidence placed in the firm on its inaugural issuance through Nigeria's domestic debt capital market.

The successful financing is projected to stimulate productive capacity, job creation, local value addition, and economic diversification, underscoring FCMB Capital Markets' commitment to supporting governments, financial institutions, and companies in structuring and accessing funding through Nigeria's capital market.