Bank of Industry Mobilises N250bn Development Bond in Domestic Capital Market as Institutional Demand Spikes

The Bank of Industry (BoI) has successfully mobilized N250 billion through its maiden Series 1 Fixed Rate Bond, demonstrating robust investor confidence in Nigeria's domestic capital market. The offer was oversubscribed within just five working days, attracting a diverse range of institutional investors including Pension Fund Administrators, banks, Development Finance Institutions, and corporations. The transaction also received crucial anchor support from the Nigeria Sovereign Investment Authority and the International Finance Corporation, highlighting confidence in BoI's credit quality and its expanding role in the market.

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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.

BoI Managing Director/Chief Executive, Dr. Olasupo Olusi, attributed the strong investor response to President Bola Tinubu's interventions. He specifically cited the executive approval for incentives designed to encourage investor participation as a key factor. Olusi stated that this support acted as leverage and sent a positive signal to discerning investors, emphasizing the President's role in this achievement. The strength of the demand, he noted, validates the domestic market's capacity to mobilize long-term capital for productive investments.

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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.

Further bolstering support for Nigeria's productive sector, President Tinubu has approved a N100 billion fund for BoI. This fund will be used to blend the bond's pricing and mitigate the impact of high interest rates on manufacturers and other BoI customers. Olusi highlighted this as further testament to the President's commitment to the nation's productive industries. While final subscription and allotment figures are pending approval from the Securities and Exchange Commission (SEC), the initial performance underscores the significant potential of the domestic capital market to finance development on a large scale.

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This is further testament of Mr. President’s support for Nigeria’s productive sector.