The Bank of Industry (BOI), through BOI Financing SPV Plc, has opened subscriptions for its inaugural Series 1 Fixed Rate Bond valued at up to N250 billion under its $1 billion multi-currency instruments programme.
The bond issuance is aimed at raising long-term capital to finance businesses and projects across Nigeria’s priority sectors, including agriculture, healthcare, technology, renewable energy, manufacturing and solid minerals.
The offer, which opened on August 5 and closes on August 11, is being arranged by Chapel Hill Denham as the lead issuing house. 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.
According to the offer document, proceeds from the issuance will support eligible businesses and projects aligned with BOI’s development finance mandate.
The bank said the funding would improve access to medium and long-term financing for Nigerian enterprises, expand productive capacity, create and preserve jobs, strengthen local value chains, support import substitution and boost export growth.
BOI said the bond proceeds would target sectors such as agriculture and food processing, healthcare, engineering and technology, renewable energy, petrochemicals, oil and gas, creative industries and solid minerals.
The development finance institution said it has supported more than one million businesses across Nigeria and disbursed over N1.27 trillion between 2023 and 2025.
Operating across 34 states and the Federal Capital Territory, BOI is jointly owned by the Ministry of Finance Incorporated and the Central Bank of Nigeria.
The bank also reported strong financial performance, recording a 36 per cent compound annual growth rate in gross earnings between 2021 and 2025. Its interest income increased by 64 per cent to N884 billion in 2025 from N538 billion in the previous year.
BOI added that its capital adequacy ratio stood at 39 per cent, nearly four times the regulatory minimum of 10 per cent, while its non-performing loan ratio remained at 1.7 per cent, below the Central Bank of Nigeria’s five per cent prudential limit.
The bond has received AAA ratings from Agusto & Co. and Intelligence Africa, reflecting the institution’s capital strength, profitability, liquidity position and ownership structure.
The issuance is open to institutional and qualified investors, with a minimum subscription of N5 million and additional investments in multiples of N1 million.
Interest payments will be made semi-annually at a fixed rate, while repayment of the principal will begin in the third year through equal semi-annual instalments until maturity in 2031.
Source: https://msmeafricaonline.com/
