The Bank of Industry has commenced the sale of its first Series 1 Fixed Rate Bond, with plans to raise as much as N250bn to provide long-term financing for businesses and projects across Nigeria.
The bond is being issued through BOI Financing SPV Plc under the bank’s $1bn multi-currency debt issuance programme. The offer opened on August 5 and is scheduled to close on August 11, with Chapel Hill Denham serving as the lead issuing house.
The five-year instrument carries an interest yield ranging from 17.35 per cent to 17.50 per cent and is expected to be listed on the FMDQ Securities Exchange.
BOI said funds generated from the bond would be channelled into qualifying businesses and projects in sectors considered critical to Nigeria’s economic development. These include agriculture and food processing, healthcare, engineering and technology, renewable energy, petrochemicals, oil and gas, the creative sector and solid minerals.
The development finance institution said the funding would help Nigerian businesses access medium- and long-term capital, while supporting expansion, job creation and the growth of local production.
It added that the financing would also encourage local value addition, reduce dependence on imported products, increase export capacity and strengthen supply chains within the country.
BOI said it has supported more than one million businesses nationwide, disbursing over N1.27tn between 2023 and 2025. The institution currently has operations across 34 states and the Federal Capital Territory and is owned jointly by the Ministry of Finance Incorporated and the Central Bank of Nigeria.
The bank also pointed to improvements in its financial performance, recording a 36 per cent compound annual growth in gross earnings between 2021 and 2025.
Its interest income increased by 64 per cent, climbing from N538bn in 2024 to N884bn in 2025. BOI’s capital adequacy ratio stood at 39 per cent, significantly above the 10 per cent regulatory requirement, while its non-performing loan ratio remained at 1.7 per cent, below the Central Bank of Nigeria’s five per cent threshold.
The bond has received AAA ratings from Agusto & Co. and Intelligence Africa, with the ratings reflecting BOI’s capital strength, profitability, liquidity position and ownership structure.
The offer is available to institutional and qualified investors, with a minimum entry point of N5m and subsequent investments allowed in multiples of N1m.
Investors will receive fixed interest payments twice a year. Repayment of the principal will commence in the third year, with equal semi-annual instalments continuing until the bond reaches maturity in 2031.
BOI also said the bond enjoys tax exemption, a feature that could make the instrument appealing to investors seeking predictable returns as market interest rates are expected to ease.
