The Bank of Industry (BOI) has credited President Bola Tinubu’s support for the strong investor demand that led to the oversubscription of its N250 billion Series 1 Fixed Rate Bond within five working days.
The bond, issued through BOI Financing SPV Plc under the bank’s $1 billion Multi-Currency Instruments Programme, was launched on August 5 and is aimed at raising long-term capital to finance businesses across key sectors of the economy.
BOI’s Chief Executive Officer, Olasupo Olusi, said the response reflected investor confidence in the bank and Nigeria’s domestic capital market.
He said the President’s approval of incentives for investors contributed to the swift oversubscription of the offer.
Olusi added that a separate N100 billion fund approved by Tinubu would be used alongside the bond proceeds to help cushion high interest rates and improve access to financing for manufacturers and other BOI customers.
According to BOI, proceeds from the bond will support businesses in sectors including agriculture, healthcare, engineering and technology, renewable energy, oil and gas, creative industries, and solid minerals. The financing is expected to boost productive capacity, job creation, local value addition, and economic diversification.
The bank said the transaction also demonstrates growing institutional appetite for long-term domestic assets and strengthens its funding base by complementing its international capital-market activities.
BOI and its advisers said final subscription and allotment figures would not be released until the transaction receives approval from the Securities and Exchange Commission.
The bank described the strong demand as a major milestone for Nigeria’s domestic market for long-term development financing.
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