BOI opens N250bn bond offer to fund businesses

The Bank of Industry (BOI) has initiated a significant N250 billion bond offering, seeking to bolster long-term capital for businesses operating in Nigeria's key economic sectors. This inaugural Series 1 Fixed Rate Bond, part of a larger $1 billion multi-currency program, aims to provide crucial financing for enterprises across the nation.

The five-year bond, which opened for subscriptions on August 5 and closes on August 11, is being arranged by Chapel Hill Denham. It is priced within a yield range of 17.35% to 17.50% and will be listed on the FMDQ Securities Exchange. The proceeds are earmarked for eligible businesses and projects in sectors such as agriculture, healthcare, technology, renewable energy, and solid minerals, aligning with BOI's development finance mandate. This initiative is expected to enhance access to medium and long-term funding, expand productive capacity, create jobs, and support import substitution and export growth.

BOI, Nigeria's primary development finance institution, highlighted its substantial track record, having disbursed over N1.27 trillion to more than one million businesses between 2023 and 2025. The institution operates nationwide and is jointly owned by the Ministry of Finance Incorporated and the Central Bank of Nigeria. The bank reported a strong financial performance, with a 36% compound annual growth rate in gross earnings from 2021 to 2025. Its capital adequacy ratio stands at 39%, well above the regulatory minimum, and its non-performing loan ratio is a healthy 1.7%. The bond has received AAA ratings from Agusto & Co. and Intelligence Africa, underscoring the issuer's robust financial health.