…….Strong institutional demand pushes Bank of Industry’s debut naira bond above its initial N250bn target
The Bank of Industry (BOI) has raised N274.18 billion through its inaugural five-year fixed-rate naira-denominated bond due in 2031.
The transaction represents the largest debt capital markets issuance by a Development Finance Institution in Nigeria, based on publicly available market data.
BOI initially targeted N250 billion through the bond offer.
However, strong demand from institutional investors allowed the development finance institution to increase the size of the issuance to N274.18 billion.
Rand Merchant Bank Nigeria acted as the Joint Issuing House for the transaction.
Pension Funds, Banks Lead Demand
The bond attracted significant participation from pension fund administrators, banks, insurance companies, asset managers and other institutional investors.
The strong participation highlights the growing capacity of Nigeria’s domestic debt market to mobilise large pools of long-term institutional capital.
Commenting on the transaction, RMB Nigeria Executive Director and Head of Investment Banking, Broader Africa, Chidi Iwuchukwu, said the issuance demonstrated the ability of Nigeria’s capital markets to mobilise long-term funding at scale.
He said BOI remains important to Nigeria’s industrialisation, enterprise development and job creation.
Iwuchukwu added that RMB was pleased to partner with BOI on the transaction.
BOI Gets More Long-Term Funding
The N274.18 billion raised through the bond gives BOI additional long-term naira funding to support its development finance mandate.
The institution focuses on financing industrial and productive activities, supporting businesses and contributing to employment generation.
The transaction also strengthens the role of Nigeria’s domestic capital market as a funding source for major institutions.
According to RMB, the successful issuance demonstrates the depth of liquidity available in the domestic market.
It also shows the capacity of local investors to support large-scale, long-term financing transactions.
RMB Highlights Growing Debt Market
RMB Nigeria’s Head of Debt Capital Markets, Laju Atake, said the transaction reflected the continued development of Nigeria’s capital market.
Atake said access to long-term capital remains increasingly important for major institutions seeking sustainable financing.
She disclosed that RMB had advised five different issuers on their debut debt capital markets transactions in Nigeria over the preceding nine months.
The BOI transaction further strengthens RMB’s relationship with the development finance institution.
The investment bank previously acted as financial adviser on BOI’s inaugural Eurobond issuance and supported the establishment of its domestic bond programme.
The latest bond issuance comes amid increased efforts by Nigerian financial institutions and corporates to secure longer-tenor funding from the domestic debt market.
