The Bank of Industry (BOI) has completed Nigeria’s largest non-government bond issuance to date, raising USD 207 million through a five-year fixed-rate bond due in 2031. The transaction, valued at NGN 274.19 billion, marks the biggest debt raise by a Nigerian development finance institution (DFI) and shows growing investor confidence in the country’s domestic capital market.
The bond was issued under BOI’s USD 1 billion multi-currency instruments programme and was heavily oversubscribed by institutional investors. Participants included the Nigeria Sovereign Investment Authority (NSIA), the International Finance Corporation (IFC), pension fund administrators (PFAs), banks, DFIs, and corporates. The transaction was advised by law firms Aluko & Oyebode and Olaniwun Ajayi, alongside financial advisers Chapel Hill Denham and Quest Merchant Bank.
Chapel Hill Denham, which served as lead issuing house and bookrunner, described the bond as a milestone for Nigeria’s debt capital market. “The strong response to the offer reinforces the depth of Nigeria’s domestic debt capital market and its capacity to mobilise long-term capital for productive investment,” the firm stated.
Unlike many African DFIs that rely on foreign funding, BOI has historically depended on local capital markets to fund its operations. This bond issuance aligns with a broader trend among Nigerian institutions to deepen domestic financing channels, reducing reliance on external lenders. The move also follows recent high-profile bond issues in the region, including Afreximbank’s USD 1.5 billion issuance in July, which set a new benchmark for African financial institutions.
The proceeds will support BOI’s core mandate of driving Nigeria’s industrial and economic transformation. The bank targets sectors such as agro-processing, renewable energy, healthcare, and technology, with a focus on job creation and local value chain development. Between 2023 and 2025, BOI supported over 1 million enterprises and disbursed more than NGN 1.27 trillion (USD 960 million) in loans nationwide.
In its statement, BOI framed the bond as more than a financing transaction. “This represents a strategic step towards deepening Nigeria’s domestic capital market and mobilising long-term Naira capital to support businesses, expand productive capacity, and strengthen local value chains,” the bank said. The issuance also serves as a vote of confidence in BOI’s ability to deliver on its development objectives, with the bank emphasizing its commitment to scaling up capital mobilization and business support.
Founded in 1959, BOI is Nigeria’s oldest and largest DFI. Its long-term loans and advisory services have historically focused on industrial growth, positioning it as a key player in the country’s economic diversification efforts. The recent bond issuance aligns with broader efforts to attract institutional investors to Nigeria’s capital markets, particularly as the government seeks to reduce dependence on short-term foreign borrowing.
Investor demand for the bond reflects broader trends in West Africa’s debt markets, where DFIs and corporates are increasingly turning to local currency issuances to fund sustainable projects. The transaction’s success suggests growing confidence in Nigeria’s ability to sustain long-term capital mobilization, even amid economic challenges.