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🇳🇬 Nigeria /Economy & Trade

Investors show strong appetite for BOI’s N250bn bond

From The Punch · () English

Summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Outcome reported
  • The Bank of Industry Limited (BOI) successfully closed its maiden N250 billion Series 1 Fixed Rate Bond, which was oversubscribed by institutional investors.
  • The bond attracted participation from pension fund administrators, banks, development finance institutions, and corporates, including anchors like the Nigeria Sovereign Investment Authority and the International Finance Corporation.
  • Funds raised will support Nigerian businesses, industrial expansion, job creation, and economic diversification, with government incentives playing a key role in attracting investor confidence.

Investors have demonstrated a strong appetite for long-term domestic assets, leading to the successful closure and oversubscription of the Bank of Industry Limited's (BOI) maiden N250 billion Series 1 Fixed Rate Bond. Issued under the bank's $1 billion Multi-Currency Instruments Programme via BOI Financing SPV Plc, the bond attracted a diverse range of institutional investors.

Participants included pension fund administrators, banks, development finance institutions, and various corporates. The involvement of major institutional anchors such as the Nigeria Sovereign Investment Authority and the International Finance Corporation significantly bolstered investor confidence in the offering. This successful transaction provides BOI with a crucial new avenue for mobilizing long-term funding from Nigeria's domestic capital market, complementing its existing access to international funding sources.

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.

— Olasupo OlusiOlusi attributes the bond's success to President Tinubu's executive approval of incentives for investors.

Olasupo Olusi, Managing Director and Chief Executive Officer of BOI, hailed the strong demand as a testament to confidence in both the bank and Nigeria's domestic capital market's capacity for long-term financing of productive investments. He stated that the mobilized funds will be deployed to support Nigerian businesses, foster industrial expansion, create jobs, strengthen local value chains, and drive economic diversification.

Olusi specifically credited President Bola Tinubu's economic reforms and support, noting that government-approved incentives for the bond were instrumental in strengthening investor interest. He explained that a N100 billion fund approved by the President for BOI would be used to optimize the bond's pricing and mitigate the impact of high interest rates on manufacturers and other BOI customers. This initiative underscores the President's commitment to supporting Nigeria's productive sector.

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

— Olasupo OlusiOlusi emphasizes the President's backing for the nation's productive industries.
About this summary

Originally published by The Punch. Summarized and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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