₦250bn BOI Bond Oversubscribed in Five Days as Bank Credits Tinubu’s Support

ABUJA — The Bank of Industry has praised President Bola Tinubu for his support after investors oversubscribed its ₦250 billion Series 1 fixed-rate bond just five working days after its issuance.

BOI said the strong demand reflects growing investor confidence in the bank as well as Nigeria’s domestic capital market.

Special Adviser to President Tinubu on Information and Strategy, Bayo Onanuga, announced the development in a statement on Tuesday.

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

BOI CEO Olasupo Olusi said the investor response was significant, describing it as a vote of confidence in the institution and the Nigerian 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 credited the Tinubu administration’s support and incentives for helping to attract investors to the transaction.

“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.

According to Olusi, the presidential approval provided additional reassurance to investors.

“This became a leverage and a positive signal to discerning investors. Mr President deserves the honour for this feat. This is further testament to Mr President’s support for Nigeria’s productive sector,” he said.

BOI to deploy funds to productive sectors

Olusi said the transaction was designed to transform investor confidence into increased access to long-term financing for Nigerian enterprises.

He said the funding could support industrial expansion, create jobs, strengthen domestic value chains and improve Nigeria’s economic competitiveness.

The BOI CEO also disclosed that the ₦100 billion fund approved for the bank by President Tinubu would be used to blend the bond’s pricing and reduce 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,” Olusi said.

BOI said the transaction would broaden its funding sources, adding to its established record in international capital markets while increasing its mobilisation of long-term domestic capital from institutional investors.

The bank said the successful issuance demonstrates the increasing ability of Nigeria’s domestic capital market to channel institutional savings into productive economic activities.

Final allotment figures pending SEC approval

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

The transaction is also still moving towards completion.

The bank said the key indicators at this stage are the quality and strength of investor demand, the pricing achieved and the diversity of the investor base.

According to BOI, these factors demonstrate continued institutional appetite for high-quality, long-term domestic assets and highlight the capital market’s ability to mobilise development-oriented funding at scale.

Proceeds from the bond will strengthen BOI’s capacity to provide long-term funding to eligible enterprises in priority sectors.

The financing is expected to support investment in productive capacity, local value addition, employment creation and economic diversification.

BOI described the successful transaction as another major step in the development of Nigeria’s domestic market for long-term development capital and said it further reinforces the bank’s position as a credible and repeat capital-markets issuer.

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