The Bank of Industry (BOI) has raised N274.18 billion through its inaugural five-year fixed-rate naira-denominated bond due 2031, in what has emerged as the largest debt capital markets issuance by a Development Finance Institution in Nigeria, based on publicly available market data.
The transaction, initially targeted at N250 billion, was oversubscribed as strong demand from institutional investors enabled the development finance institution to increase the size of the offer to N274.18 billion.
Rand Merchant Bank Nigeria acted as the Joint Issuing House for the transaction, which attracted significant participation from pension fund administrators, banks, insurance companies, asset managers, development finance institutions and other institutional investors.
The size of the issuance highlights the growing capacity of Nigeria’s domestic debt capital market to mobilise substantial pools of long-term institutional capital for development financing.
Commenting on the transaction, Executive Director and Head of Investment Banking, Broader Africa, RMB Nigeria, Chidi Iwuchukwu, said the successful issuance demonstrated the ability of the Nigerian capital market to mobilise long-term funding at scale.
‘This transaction demonstrates the ability of Nigeria’s capital markets to mobilise long-term capital at scale,’ Iwuchukwu said.
He said BOI remains critical to Nigeria’s industrialisation drive, enterprise development and job creation, adding that RMB was pleased to have partnered with the institution on the transaction.
According to him, the issuance further reinforces RMB’s commitment to providing financing solutions capable of supporting sustainable economic growth in Nigeria and across Africa.
The latest transaction also deepens RMB’s relationship with BOI, having previously acted as financial adviser on the bank’s inaugural Eurobond issuance and supported the establishment of its domestic bond programme.
Head of Debt Capital Markets, RMB Nigeria, Laju Atake, said the successful issuance reflected the continued evolution of Nigeria’s capital market and the increasing importance of efficient access to long-term capital for major institutions.
Atake said supporting debut issuers and major debt capital market transactions remains a key 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,’ she said.
She added that BOI’s domestic bond issuance underscored the development of the Nigerian capital market and the ability of leading institutions to access long-term funding through the local market.
The transaction comes amid increasing efforts by Nigerian financial institutions and corporates to tap the domestic debt market for longer-tenor funding as investors seek opportunities to deploy substantial institutional liquidity.
RMB said the successful issuance demonstrated the depth of liquidity available in Nigeria’s domestic capital markets and the capacity of local investors to support large-scale, long-term financing transactions.
The broad investor participation is particularly significant for the domestic debt market, where pension funds, insurers, banks and asset managers represent some of the largest pools of institutional capital available for infrastructure, industrial and corporate financing.
The Bank of Industry is Nigeria’s foremost development finance institution, with a mandate focused on financing industrial and productive activities, supporting businesses and contributing to employment generation.
The N274.18 billion raised through the bond provides the institution with additional long-term naira funding to support its development finance mandate while further establishing the domestic capital market as a viable channel for large-scale institutional financing.
RMB expressed appreciation to the Securities and Exchange Commission, the Central Bank of Nigeria, professional advisers, transaction parties, investors and other market participants involved in the execution of the transaction.
The investment bank also congratulated the Board, Management and staff of BOI on the successful issuance, describing the transaction as another milestone in its longstanding relationship with the development finance institution.
The BOI transaction adds to RMB’s growing debt capital markets activity in Nigeria and its broader efforts to mobilise long-term capital for sustainable economic development.