BOI Hails Tinubu as N250bn Bond Oversubscribes in Five Days

The Bank of Industry has credited President Bola Tinubu’s leadership and executive support for the strong investor response that led to the oversubscription of its N250 billion Series 1 Fixed Rate Bond within five working days.

The bank described the development as a vote of confidence in BOI and Nigeria’s domestic capital market.

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

The development was disclosed by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, in a statement issued on Tuesday.

BOI Chief Executive Officer, Olasupo Olusi, said the rapid oversubscription would not have been achieved without incentives approved by President Tinubu to encourage investors to participate in the transaction.

According to Olusi, the strong demand demonstrated confidence in the ability of Nigeria’s domestic capital market to mobilise long-term funding for productive investment.

He said the President’s executive approval of various incentives provided leverage and sent a positive signal to investors.

Olusi also disclosed that a separate N100 billion fund approved by Tinubu for BOI would be used to blend the bond’s pricing and reduce the impact of high interest rates on manufacturers and other customers of the bank.

He described the intervention as further evidence of the administration’s support for Nigeria’s productive sectors.

According to the BOI chief executive, the ultimate objective of the transaction is to convert investor confidence into increased access to long-term financing for Nigerian businesses.

He said such financing could support industrial expansion, job creation, local value chains and Nigeria’s economic competitiveness.

The bank said the bond represents a significant expansion of its funding structure, complementing its established presence in international capital markets with increased mobilisation of long-term domestic institutional funds.

BOI said the transaction also demonstrated the growing capacity of Nigeria’s domestic capital market to channel institutional savings into productive areas of the economy.

However, the bank and its transaction advisers said final subscription and allotment figures would not be disclosed immediately because the final allotment remains subject to approval by the Securities and Exchange Commission.

According to BOI, the immediate significance of the transaction lies in the strength and quality of investor demand, the pricing achieved and the broad participation of institutional investors.

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

The funds are expected to support productive capacity, local value addition, employment creation and economic diversification.

BOI described the successful transaction as another milestone in the development of Nigeria’s domestic market for long-term development capital and a further strengthening of its position as a credible capital markets issuer.