The Bank of Industry Limited (BOI) says its maiden N250 billion Series 1 Fixed Rate Bond closed oversubscribed within five working days, following strong demand from institutional investors.
The bond was issued through BOI Financing SPV Plc under the bank’s $1 billion Multi-Currency Instruments Programme. It drew participation from Pension Fund Administrators, commercial banks, Development Finance Institutions, corporates and other institutional investors, with the Nigeria Sovereign Investment Authority and the International Finance Corporation serving as institutional anchors.
The five-year bond, arranged by Chapel Hill Denham as lead issuing house, priced within a yield range of 17.35–17.50 percent and will list on the FMDQ Securities Exchange. Principal repayment begins in year three through equal semi-annual amortised instalments, maturing in 2031.
BOI Managing Director and CEO Olasupo Olusi said the response reflected confidence “not only in BOI, but also in the capacity of Nigeria’s domestic capital market to mobilise long-term capital for productive investment.” He credited President Bola Tinubu’s approval of a separate N100 billion fund for BOI, which will be used to blend the bond’s pricing and cushion the effect of high interest rates on manufacturers and other BOI customers.
Proceeds are earmarked for eligible businesses across agriculture and food processing, healthcare, engineering and technology, renewable energy, petrochemicals, oil and gas, creative industries and solid minerals — in line with BOI’s development finance mandate. Final allotment and detailed subscription figures remain subject to regulatory approval and have not yet been disclosed.
See today’s briefings: https://www.theprojectherald.com/outlook-capital-chasing-infrastructure-delivery-gap/