BOI Launches N250bn Bond Offer for Business Financing

The Bank of Industry (BOI), through BOI Financing SPV Plc, has opened subscriptions for its inaugural Series 1 Fixed Rate Bond worth up to N250bn under its $1bn multi-currency instruments programme, aimed at raising long-term capital to finance businesses in Nigeria’s priority sectors. The bond offer commenced on August 5 and will close on August 11, 2023, and is being arranged by Chapel Hill Denham as the lead issuing house.

This five-year bond is priced within a yield range of 17.35% to 17.50% and will be listed on the FMDQ Securities Exchange. Proceeds will finance eligible businesses across sectors such as agriculture, healthcare, renewable energy, and more, aligning with BOI’s development finance mandate.

The financing is expected to enhance access to medium and long-term funding, expand productive capacity, and strengthen domestic value chains. BOI has provided funding to over one million businesses and disbursed more than N1.27tn between 2023 and 2025.

The bond has received AAA ratings from Agusto & Co. and Intelligence Africa, and is open to institutional and qualified investors with a minimum subscription of N5m.