BOI's N250bn bond oversubscribed as Tinubu support boosts investor confidence in Nigeria's debt market
BOI's N250 billion Series 1 Fixed Rate Bond attracted subscriptions above the offered amount, marking its successful debut in Nigeria's domestic debt market. The bond, issued through BOI Financing SPV Plc under the bank's $1 billion multi-currency programme, drew strong interest from pension funds, banks, and development institutions, with anchor investments from NSIA and IFC. Proceeds will expand BOI's long-term financing for priority sectors to support industrial growth, job creation, and economic diversification.
According to Nairametrics, BOI MD Dr. Olasupo Olusi credited President Tinubu's policy support and incentives for the strong investor response, noting executive approvals were key to the success. He also disclosed a N100 billion fund approved by Tinubu would support bond pricing and cushion borrowing costs for manufacturers. The 5-year bond offers semi-annual coupon payments with a two-year principal moratorium, priced at 17.35%-17.50% yield. The offer ran from August 5-11 and was arranged by Chapel Hill Denham, with listing expected on FMDQ Securities Exchange after SEC approval.
This development signals growing confidence in Nigeria's capacity to mobilize long-term capital for productive investment through domestic markets. For businesses in priority sectors, it means expanded access to long-term financing from BOI. For investors, it highlights opportunities in high-quality long-term instruments. Will this increased access to long-term financing for priority sectors lead to visible industrial growth and job creation in your community or sector?