The Bank of Industry Limited (BOI) on Tuesday commended President Bola Tinubu for his leadership and support after its ₦250 billion Series 1 Fixed Rate Bond was oversubscribed within five days.
Bayo Onanuga, Presidential Spokesman said the bank issued the bond through its BOI Financing SPV Plc under the bank’s $1 billion Multi-Currency Instruments Programme.
Olasupo Olusi the banks CEO alsosaid the bond’s oversubscription indicates investors’ confidence in the bank and Nigeria.
“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,” he said.
“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.
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“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.”
Olisi said the goal of the transaction is to turn investor confidence into increased financing for Nigerian enterprises, leading to job creation and a healthier economy.
He also stressed that the ₦100 billion fund approved for the Bank by President Tinubu would be used to blend the bond’s pricing and cushion the impact of high interest rates for manufacturers and other BOI customers.
“This is further testament to Mr President’s support for Nigeria’s productive sector,” Olusi said.
According to Olusi, the ultimate objective of the transaction is to translate investor confidence into increased financing for Nigerian enterprises, with potential impact on industrial expansion, job creation, domestic value chains and economic competitiveness.
The Bank said the transaction represents a significant broadening of its funding architecture, complementing its established track record in international capital markets with deeper mobilisation of long-term capital from domestic institutional investors.
BOI noted that the transaction demonstrates the growing capacity of Nigeria’s domestic capital market to channel long-term institutional savings into productive sectors of the economy.
The Transaction Advisers had advised that final subscription and allotment figures should not be disclosed at this stage, as final allotment remains subject to Securities and Exchange Commission approval and the transaction is still progressing towards completion.
Olisi.added that the “immediate significance of the transaction, BOI said, lies in the strength and quality of investor demand, the pricing achieved and the breadth of the investor base”
These factors point to sustained institutional appetite for high-quality, long-term domestic assets and reinforce the Nigerian capital market’s capacity to mobilise development-oriented funding at scale.
Proceeds from the issuance will enhance BOI’s capacity to provide long-term financing to eligible enterprises across priority sectors, supporting investments in productive capacity, local value addition, employment creation and economic diversification.
According to him, “the successful transaction marks another milestone in developing Nigeria’s domestic market for long-term development capital. Further, it strengthens BOI’s position as a credible and repeat capital-markets issuer.”
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