The Bank of Industry has mobilised ₦250 billion from the domestic capital market through a development bond, marking a major funding move aimed at strengthening financing for Nigeria’s industrial and development sectors.
The bond, the first of its kind under the Bank of Industry’s $1 billion Multi-Currency Instruments Programme, was issued through BOI Financing SPV Plc and became oversubscribed within five working days, reflecting strong demand from institutional investors.
The offer attracted interest from Pension Fund Administrators, commercial banks, Development Finance Institutions, corporate organisations and other institutional investors. It also received backing from the Nigeria Sovereign Investment Authority and the International Finance Corporation, further strengthening confidence in the transaction.
The Managing Director and Chief Executive Officer of the Bank of Industry, Dr Olasupo Olusi, described the response as a strong vote of confidence in both the institution and Nigeria’s ability to raise long-term funds locally for productive investment.
Olusi said the money raised would be directed towards financing businesses in priority sectors, with the aim of supporting industrial growth, strengthening local value chains, creating jobs and improving the competitiveness of Nigerian manufacturers.
A major factor behind the strong investor response was the Federal Government’s approval of incentives for investors participating in the bond. The initiative also received ₦100 billion in presidential support, aimed at cushioning the cost of the bond and making the financing more beneficial to manufacturers and other productive businesses.
The successful offer is being seen as an important development for Nigeria’s domestic capital market, showing that major development institutions can increasingly turn to local investors to raise long-term funding rather than depending entirely on foreign borrowing.
The ₦250 billion mobilisation could also open the door for more large-scale development financing through the domestic market, especially as the government and financial institutions seek fresh ways to provide affordable funding for industries and businesses.
With the maiden Series 1 bond attracting more demand than the amount initially offered, the Bank of Industry’s latest fundraising drive has placed renewed attention on the capacity of Nigeria’s capital market to support industrialisation, job creation and long-term economic development.