The Bank of Industry (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.

Speaking on the transaction, BOI Chief Executive Officer, Olasupo Olusi, said the strong demand for the bond demonstrated growing investor confidence in both the development finance institution and Nigeria’s domestic capital market.

“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.

He attributed the strong investor response partly to the support of President Tinubu, who, according to him, granted executive approval for various incentives aimed at encouraging investors.

“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.

Olusi said the presidential support served as leverage and sent a positive signal to investors, adding that it further demonstrated the administration’s commitment to supporting Nigeria’s productive sector.

Bond proceeds to boost enterprise financing

According to the BOI chief executive, the ultimate objective of the transaction is to convert investor confidence into increased long-term financing for Nigerian businesses.

He said the funds would strengthen the bank’s capacity to finance eligible enterprises in priority sectors, with the potential to support industrial expansion, job creation, local value chains, economic diversification and improved competitiveness.

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

“This is further testament to Mr President’s support for Nigeria’s productive sector,” he said.

The bank said the transaction represents a significant expansion of its funding architecture, complementing its established presence in international capital markets with increased mobilisation of long-term domestic capital from institutional investors.

Final allotment subject to SEC approval

BOI and its transaction advisers cautioned that final subscription and allotment figures should not be disclosed at this stage, as the final allotment remains subject to approval by the Securities and Exchange Commission (SEC).

The transaction is also still progressing towards completion.

The bank said the immediate significance of the offering lies in the strength and quality of investor demand, the pricing achieved and the breadth of the investor base.

It said these factors indicate sustained institutional appetite for high-quality, long-term domestic assets and reinforce the capacity of Nigeria’s capital market to mobilise development-oriented funding at scale.

The successful bond issuance, BOI added, marks another milestone in the development of Nigeria’s domestic market for long-term development capital and further strengthens its position as a credible and repeat issuer in the capital market.