Nigeria’s Bank of Industry (BoI) has raised N274.18bn through its domestic naira-denominated five-year fixed-rate bond due 2031, representing the largest debt capital markets issuance by a development finance institution (DFI) in the country
Available market data on the bond issuance, in which Rand Merchant Bank Nigeria acted as Joint Issuing House for the transaction, showed that initially targeted N250bn from the issuance was oversubscribed based on strong investor demand, raising the issuance subscription to N274.18bn
According to the subscription details, the transaction attracted a broad range of institutional investors, including pension fund administrators, banks, insurance companies, asset managers, development finance institutions and other institutional investors.
Commenting on the result of the bond issuance in a statement, the Executive Director and Head of Investment Banking, Broader Africa, RMB Nigeria, Chidi Iwuchukwu, enthused: “This transaction demonstrates the ability of Nigeria’s capital markets to mobilise long-term capital at scale.
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“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”, the investment expert added.
Similarly, Head of Debt Capital Markets, RMB Nigeria, Laju Atake, explained that the transaction reflected the continued development of Nigeria’s capital markets and the importance of access to long-term capital.
He clarified: “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”, the expert stressed.
RMB stated that the transaction demonstrated the depth of liquidity in Nigeria’s domestic capital markets and the capacity of local investors to support large-scale, long-term financing transactions.
The bank commended the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), board and management of the BoI, professional advisers, transaction parties, investors and other market participants who supported the execution of the issuance.
The transaction has further consolidated the RMB’s investment ties with BOI across international and domestic capital markets and supports the mobilisation of long-term capital for sustainable economic development.
