….Presidency N250bn BOI bond response reflects growing confidence in domestic capital market

The Presidency has attributed the successful oversubscription of the Bank of Industry’s (BOI) N250 billion Series 1 Fixed Rate Bond to growing investor confidence in Nigeria’s economy and the supportive policies of President Bola Tinubu.

The Special Adviser to the President on Information and Strategy, Bayo Onanuga, disclosed this in a statement on Tuesday, saying the bond was oversubscribed within five working days.

The bond was issued through BOI Financing SPV Plc under the bank’s $1 billion Multi-Currency Instruments Programme.

According to Onanuga, BOI Chief Executive Officer, Olasupo Olusi, credited President Tinubu’s leadership and support for the strong investor response, describing the development as a vote of confidence in both the bank and Nigeria’s domestic capital market.

Olusi said the investor response demonstrated the capacity of the domestic market to mobilise long-term capital for productive investment.

“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,” he said.

The BOI chief executive, according to Onanuga, also acknowledged the President’s executive approval of incentives designed to encourage investors, saying the intervention provided leverage and sent a positive signal to the investment community.

“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,” Olusi said.

He said the successful transaction would enable BOI to translate investor confidence into increased financing for Nigerian enterprises, with potential benefits for industrial expansion, job creation, domestic value chains and economic competitiveness.

Olusi further disclosed that the N100 billion fund approved for BOI 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.

He said the intervention was another demonstration of the President’s support for Nigeria’s productive sector.

Onanuga said the transaction also represented a significant expansion of BOI’s funding architecture, complementing its established record in international capital markets with deeper mobilisation of long-term capital from domestic institutional investors.

The bank, he added, viewed the transaction as evidence of the growing capacity of Nigeria’s domestic capital market to channel long-term institutional savings into productive sectors of the economy.

However, Onanuga said BOI and its transaction advisers had advised that final subscription and allotment figures should not be disclosed at this stage, as final allotment remained subject to approval by the Securities and Exchange Commission (SEC) and completion of the transaction.

He said the immediate significance of the transaction lay in the strength and quality of investor demand, the pricing achieved and the breadth of the investor base.

“These factors point to sustained institutional appetite for high-quality, long-term domestic assets and reinforce the Nigerian capital market’s capacity to mobilise development-oriented funding at scale,” Onanuga said.

According to him, proceeds from the issuance would enhance BOI’s capacity to provide long-term financing to eligible enterprises across priority sectors, supporting investments in productive capacity, local value addition, employment creation and economic diversification.

He said the successful transaction marked another milestone in the development of Nigeria’s domestic market for long-term development capital and further strengthened BOI’s position as a credible and repeat capital-markets issuer.