The Bank of Industry has raised N274.18bn through its inaugural domestic naira-denominated five-year fixed-rate bond due 2031, making it the largest debt capital markets issuance by a Development Finance Institution in Nigeria, based on publicly available market data.
Rand Merchant Bank Nigeria acted as Joint Issuing House for the transaction, which was initially targeted at N250bn. The bond was oversubscribed, with strong investor demand enabling the Bank of Industry to increase the issuance to N274.18bn.
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.
“This transaction demonstrates the ability of Nigeria’s capital markets to mobilise long-term capital at scale,” said the Executive Director and Head of Investment Banking, Broader Africa, RMB Nigeria, Chidi Iwuchukwu, in a statement on Thursday.
“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 transaction also builds on RMB’s relationship with BOI, having previously acted as Financial Adviser on the bank’s inaugural Eurobond issuance and supported the establishment of its domestic bond programme.
Head of Debt Capital Markets, RMB Nigeria, Laju Atake, said the transaction reflected the continued development of Nigeria’s capital markets and the importance of access to long-term capital.
“Supporting inaugural issuers and significant capital markets transactions is a core strength of RMB’s debt capital markets franchise,” Atake said.
“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.”
RMB said 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 extended its appreciation to the Securities and Exchange Commission, the Central Bank of Nigeria, professional advisers, transaction parties, investors and other market participants who supported the execution of the issuance.
RMB also congratulated the Board, Management and staff of the Bank of Industry on the transaction and thanked BOI for its continued trust.
The transaction adds to RMB’s work with BOI across international and domestic capital markets and supports the mobilisation of long-term capital for sustainable economic development.