BOI Floats N250bn Bond to Fund Businesses

The Bank of Industry (BOI) has opened a N250 billion fixed-rate bond offer to raise fresh long-term capital for Nigerian businesses and projects across key sectors of the economy.

The offer, issued through BOI Financing SPV Plc, represents the bank’s first Series 1 Fixed Rate Bond under its $1 billion multi-currency debt issuance programme.

The five-year offer opened on August 5, 2026, and closes on August 11, with investors offered yields of between 17.35 per cent and 17.50 per cent. The bond is expected to be listed on the FMDQ Securities Exchange.

BOI said funds raised through the issuance would be deployed to eligible businesses operating in sectors including agriculture and food processing, healthcare, engineering and technology, renewable energy, petrochemicals, oil and gas, creative industries and solid minerals.

The bank said the initiative is aimed at tackling one of the major challenges confronting Nigerian businesses — access to affordable, medium- and long-term financing.

According to BOI, the funding will help businesses scale production, protect and create jobs, strengthen local supply chains, reduce dependence on imports and improve Nigeria’s capacity to produce goods for export.

The bond is available to institutional and qualified investors, with a minimum subscription of N5 million and additional subscriptions in multiples of N1 million.

Interest will be paid twice a year at a fixed rate, while repayment of the principal is scheduled to begin from the third year through equal semi-annual instalments. The bond will mature in 2031.

The securities have received AAA ratings from Agusto & Co. and Intelligence Africa, while their tax-exempt status could make them attractive to investors seeking relatively stable fixed-income instruments.

The latest fundraising comes as BOI continues to expand its development-finance footprint across the country.

The bank reported that it supported more than one million businesses and disbursed over N1.27 trillion between 2023 and 2025, highlighting the scale of its intervention in the Nigerian economy.

In 2025 alone, BOI’s Development Impact Report showed that the institution disbursed N644.9 billion to 7,078 direct businesses. Financing was spread across sectors including agro-processing, food production, engineering and technology, oil and gas, power, transportation, hospitality and mining.

BOI has also continued to attract funding from international development institutions. In May 2026, the African Development Bank approved a $200 million financing facility for the bank to expand medium- and long-term funding for businesses involved in infrastructure and transport, agro-food processing, healthcare, pharmaceuticals and green industrialisation.

At least 30 per cent of the AfDB facility is expected to support small and medium-sized enterprises, with women- and youth-led businesses among the priority beneficiaries.

With the N250 billion bond, BOI is effectively widening its funding channels at a time when businesses are seeking longer-term capital to withstand rising operating costs and finance expansion.

The additional liquidity could enable more Nigerian companies to purchase productive equipment, expand capacity, develop new products and enter new markets.

For BOI, the transaction goes beyond raising money. It is part of a broader effort to deepen industrial financing, stimulate private-sector investment, create jobs and accelerate Nigeria’s transition towards a more productive and diversified economy.