BOI Credits Tinubu as N250bn Bond Attracts Strong Investor Demand

The Bank of Industry Limited has credited President Bola Ahmed Tinubu’s leadership and support for the successful oversubscription of its N250 billion Series 1 Fixed Rate Bond within five working days.

The bond was issued through BOI Financing SPV Plc under the bank’s $1 billion Multi-Currency Instruments Programme.

BOI Chief Executive Officer, Olasupo Olusi, said the strong investor response demonstrated confidence in both the bank 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 also attributed the strong demand for the bond to the support provided by President Tinubu, including executive approval for 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,” he said.

Olusi said the N100 billion fund approved for BOI by President Tinubu would be used to blend the bond’s pricing and cushion the impact of high interest rates on manufacturers and other BOI customers.

According to him, the ultimate objective of the transaction is to convert investor confidence into increased financing for Nigerian businesses, with the potential to support industrial expansion, job creation, local value chains and economic diversification.

BOI said proceeds from the bond would strengthen its capacity to provide long-term financing to eligible businesses across priority sectors.

The bank added that the transaction represents a significant expansion of its funding sources and demonstrates the growing capacity of Nigeria’s domestic capital market to mobilise long-term institutional funds for productive investment.

BOI and its transaction advisers said final subscription and allotment figures would not be disclosed at this stage because final allotment remains subject to approval by the Securities and Exchange Commission.