The Bank of Industry (BOI) has raised N274.19 billion through a five-year fixed-rate development bond issued in Nigeria’s domestic debt capital market.
The Series 1 Development Bond, issued through BOI Financing SPV Plc, was priced at a fixed rate of 17.60 per cent and is due in 2031.
FCMB Capital Markets Limited acted as a joint issuing house and bookrunner for the transaction.
The bond was initially targeted at N250 billion but was increased to N274.19 billion after the offer was oversubscribed.
BOI exercised the green shoe option to accommodate additional demand from investors.
According to FCMB Capital Markets, investors in the transaction included pension fund administrators, banks, development finance institutions, corporates and other institutional investors.
FCMB Capital Markets advised BOI on the distribution strategy, book-building process and investor engagement for the issuance.
Ikechukwu Omeruah, managing director of FCMB Capital Markets, said the transaction demonstrated the capacity of Nigeria’s domestic debt capital market to mobilise funding for development projects.
“This transaction highlights the depth of Nigeria’s domestic debt capital market and its capacity to mobilise funding for development on a large scale,” Omeruah said.
He said the transaction would help strengthen BOI’s capacity to finance businesses and projects across priority sectors.
Omeruah added that the strong investor response reflected demand for investment instruments linked to Nigeria’s economic priorities.
The bond was issued under BOI’s $1 billion Multi-Currency Instruments Programme.
FCMB Capital Markets said the financing is expected to support productive capacity, job creation, local value addition and economic diversification.
The transaction also strengthens FCMB Capital Markets’ role in arranging debt and equity financing for governments, financial institutions and companies through the Nigerian capital market.