Suara Sherif
Investor confidence in the Nigeria’s industrial growth story has driven oversubscription of the Bank of Industry’s inaugural domestic Naira denominated bond, with demand exceeding the N250 billion initially sought by the development finance institution.
The five year fixed rate bond due in 2031 was eventually upsized to N274.18 billion, making it the largest debt capital markets issuance by a Development Finance Institution in Nigeria.
Rand Merchant Bank Nigeria acted as Joint Issuing House on the transaction.
The oversubscription was driven by a broad base of institutional investors, including Pension Fund Administrators, commercial banks, insurance firms, asset managers and development finance institutions.
Their participation highlights both strong investor confidence in industrial led growth and the depth of liquidity in Nigeria’s domestic capital market to fund long-term development.
Executive Director and Head of Investment Banking for Broader Africa at RMB Nigeria, Chidi Iwuchukwu, said the deal underscores the market’s capacity to mobilise capital at scale for industrial purposes.
“This transaction demonstrates the ability of Nigeria’s capital markets to mobilise long-term capital at scale.
BOI plays an important role in advancing industrialisation, enterprise growth, and job creation.”
”We are pleased to have partnered with the bank on this issuance and remain focused on delivering financing solutions that support sustainable economic growth in Nigeria and across the broader African continent,” Iwuchukwu said.
Head of Debt Capital Markets at RMB Nigeria, Laju Atake, said the industrial growth play behind the transaction aligns with RMB’s strength in supporting debut issuers.
“Supporting inaugural issuers and significant capital markets transactions is a core strength of RMB’s debt capital markets franchise.”
”Over the past nine months, we have advised five distinct issuers on their debut debt capital markets transactions in Nigeria. BOI’s domestic bond issuance reflects the continued development of Nigeria’s capital markets and the importance of efficient access to long-term capital for leading institutions,” Atake said.
The transaction consolidates RMB Nigeria’s relationship with BOI, having previously served as financial adviser on the bank’s inaugural Eurobond issuance and supported the establishment of its domestic bond programme.
The deal also received regulatory support from the Securities and Exchange Commission and the Central Bank of Nigeria, alongside transaction advisers and market operators.
For Nigeria’s capital market, the oversubscription signals more than a successful raise.
It shows that local institutional capital is ready to back industrial growth at scale, with investors viewing the Bank of Industry as a credible vehicle to drive industrialisation, enterprise expansion and job creation.
