The Bank of Industry (BOI), through BOI Financing SPV Plc, has opened subscriptions for its inaugural Series 1 Fixed Rate Bond worth up to N250bn under its $1bn multi-currency instruments programme.
The issuance is aimed at raising long-term capital to finance businesses and projects across Nigeria’s priority economic sectors.
The offer opened on August 5 and will close on August 11. Chapel Hill Denham is serving as the lead issuing house for the transaction.
The five-year bond is priced at a yield range of 17.35 per cent to 17.50 per cent and will be listed on the FMDQ Securities Exchange.
Funds to Support Priority Sectors
According to the offer document, proceeds from the bond will be used to finance eligible businesses and projects across several sectors.
These include agriculture and food processing, healthcare, engineering and technology, renewable energy, petrochemicals, oil and gas, creative industries and solid minerals.
BOI said the financing aligns with its development finance mandate and is expected to improve access to medium- and long-term funding for Nigerian businesses.
The bank said the initiative would help expand productive capacity, create and preserve jobs, increase local value addition, support import substitution, boost exports and strengthen domestic value chains.
BOI Highlights Financial Strength
The development finance institution said it has provided funding to more than one million businesses across Nigeria and disbursed over N1.27tn between 2023 and 2025.
BOI currently operates across 34 states and the Federal Capital Territory and is jointly owned by the Ministry of Finance Incorporated and the Central Bank of Nigeria.
The bank also reported strong financial growth, with gross earnings recording a compound annual growth rate of 36 per cent between 2021 and 2025.
Interest income increased by 64 per cent to N884bn in 2025, compared with N538bn in the previous year.
BOI’s capital adequacy ratio stood at 39 per cent, nearly four times the regulatory minimum of 10 per cent, while its non-performing loan ratio was 1.7 per cent, below the Central Bank of Nigeria’s five per cent prudential limit.
Bond Receives AAA Ratings
The bond has received AAA ratings from Agusto & Co. and Intelligence Africa.
The ratings reflect the issuer’s strong capitalisation, profitability, liquidity and ownership structure.
The offer is open to institutional and qualified investors, with a minimum subscription of N5m and additional investments in multiples of N1m.
Interest will be paid semi-annually at a fixed rate, while repayment of the principal will begin in the third year through equal semi-annual amortised instalments until maturity in 2031.
The bond is also tax-exempt, which could make it attractive to investors seeking stable returns, particularly amid expectations of declining interest rates.
