Nigeria’s BOI Development Bond Raises About US$206 Million
Nigeria's BOI development bond closed oversubscribed at about US$206 million. What the five-year, 17.60% deal means for investors and local finance. The post Nigeria’s BOI Development Bond Raises About US$206 Million appeared first on The Rio Times .
The Bank of Industry (BOI) successfully sold more than expected, raising about 274.19 billion naira (US$206 million) through its first domestic bond. The bond, which pays a fixed 17.60% annually and matures in 2031, was offered by BOI Financing SPV Plc, a special-purpose company under BOI's US$1 billion Multi-Currency Instruments Programme.
BOI had already borrowed abroad before this domestic bond issuance. The bond was oversubscribed within five days, and BOI used a "green-shoe" option to increase the final size to approximately 274.19 billion naira (US$206 million). Major investors included pension funds, banks, insurers, asset managers, development finance institutions, and companies.
The bond's high return and strong link to the state make it attractive to investors, as BOI is owned by the federal government. Analysts believe the bond fills the gap left by the Central Bank of Nigeria's reduced funding of businesses. It is expected to support industrial growth, import substitution, and local value addition in Nigeria's economy.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
