BOI to raise N250bn through bond offer to finance businesses in key sectors

Bank of Industry (BOI) plans to raise N250 billion through its inaugural Series 1 Fixed Rate Bond whose subscription opened on Aug. 5 and closes on Aug 11.

The offer is being arranged by Chapel Hill Denham as the lead issuing house. The five-year bond is priced within a yield range of 17.35 per cent to 17.50 per cent and will be listed on the FMDQ Securities Exchange.

The bank said it is seeking the long-term capital, through BOI Financing SPV Plc, to finance businesses across Nigeria’s priority sectors.

Specifically, proceeds from the offer will be used to finance eligible businesses and projects across sectors, including agriculture and food processing, healthcare, engineering and technology, renewable energy, petrochemicals, oil and gas, creative industries and solid minerals, in line with BOI’s development finance mandate.

The bank said the offer is also to improve its access to medium and long-term funding for Nigerian enterprises, expand productive capacity, create and preserve jobs, deepen local value addition, support import substitution, boost exports and strengthen domestic value chains.

BOI said it had disbursed over N1.27 trillion in loans to more than one million businesses across the country between 2023 and 2025.

According to the bank’s financials, the bank recorded a 36 per cent compound annual growth rate in gross earnings between 2021 and 2025.

Its interest income rose 64 per cent to N884 billion in 2025 from N538 billion in the previous year, while its capital adequacy ratio stood at 39 per cent, nearly four times the regulatory minimum of 10 per cent.

Its non-performing loan ratio was 1.7 per cent, below the CBN’s prudential limit of five per cent.

The bond has been rated AAA by Agusto & Co. and Intelligence Africa.