The Bank of Industry (BOI) has commended President Bola Ahmed Tinubu for his support and leadership following the oversubscription of its ₦250 billion Series 1 Fixed Rate Bond within five working days.
The bond was issued through BOI Financing SPV Plc under the bank’s $1 billion Multi-Currency Instruments Programme.
BOI Chief Executive Officer, Olasupo Olusi, said the strong investor response demonstrated confidence in the bank and Nigeria’s domestic capital market.
“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.”
Olusi attributed the strong investor demand to the support of President Tinubu, particularly the executive approval of incentives aimed at encouraging investment.
“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.”
He said the President’s intervention provided leverage and sent a positive signal to investors.
“This became a leverage and a positive signal to discerning investors. Mr President deserves the honour for this feat.”
Olusi added that the bond’s performance was further evidence of the President’s support for Nigeria’s productive sector.
“This is further testament to Mr President’s support for Nigeria’s productive sector.”
He said the ultimate goal was to convert investor confidence into increased financing for Nigerian enterprises, with the potential to drive industrial expansion, job creation and stronger domestic value chains.
“The ultimate objective of the transaction is to translate investor confidence into increased financing for Nigerian enterprises.”
The BOI chief executive disclosed 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 on manufacturers and other BOI customers.
“The ₦100 billion fund approved for the Bank by Mr President will be used to blend the bond’s pricing and cushion the impact of high interest rates for manufacturers and other BOI customers.”
According to the bank, proceeds from the issuance will enhance its capacity to provide long-term financing to eligible enterprises across priority sectors.
The financing is expected to support investments in productive capacity, local value addition, employment creation and economic diversification.
BOI said the transaction also demonstrated the growing capacity of Nigeria’s domestic capital market to mobilise long-term institutional savings into productive sectors of the economy.
The bank and its transaction advisers, however, advised that final subscription and allotment figures should not be disclosed at this stage, as final allotment remains subject to approval by the Securities and Exchange Commission.
BOI said the immediate significance of the transaction lies in the strength and quality of investor demand, the pricing achieved and the breadth of the investor base.
The successful transaction, it added, marks another milestone in developing Nigeria’s domestic market for long-term development capital and strengthens BOI’s position as a credible and repeat capital-markets issuer.