BOI Opens N250bn Bond Offer at 17.5% Yield to Fund Nigerian Businesses
- The Bank of Industry launched its inaugural Series 1 Fixed Rate Bond, seeking to raise up to N250bn from institutional investors
- The five-year bond carries a yield of between 17.35% and 17.50% and has received AAA ratings from two credit agencies
- Proceeds from the BOI bond will fund businesses in agriculture, healthcare, renewable energy, oil and gas, and six other sectors
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Bank of Industry (BOI), operating through BOI Financing SPV Plc, has opened subscriptions for its debut Series 1 Fixed Rate Bond, targeting up to N250 billion to channel long-term funding into key sectors of the Nigerian economy.
The offer opened on August 5 and runs until August 11, 2026.
Source: Getty Images
What is BOI's N250bn bond offer?
The N250 billion bond is designed to raise long-term funding that BOI can deploy to eligible businesses and projects in sectors considered critical to Nigeria's economic development.
According to the offer document, the proceeds will be used to finance businesses across sectors including:
- Agriculture and food processing
- Healthcare
- Engineering and technology
- Renewable energy
- Petrochemicals
- Oil and gas
- Creative industries
- Solid minerals
BOI said the financing is expected to improve access to medium- and long-term funding for Nigerian enterprises.
The bank added that the initiative would help businesses expand productive capacity, create and preserve jobs, increase local value addition, support import substitution, boost exports and strengthen domestic value chains.
BOI has funded over one million businesses
The Bank of Industry said it has provided funding to more than one million businesses across Nigeria and disbursed over N1.27 trillion between 2023 and 2025, Punch reports.
The institution operates across 34 states and the Federal Capital Territory and is jointly owned by the Ministry of Finance Incorporated and the Central Bank of Nigeria.
BOI is Nigeria's foremost development finance institution and provides financing to businesses across various sectors of the economy.
Who can invest in BOI's N250bn bond?
The offer is open to institutional and qualified investors.
Investors are required to subscribe with a minimum investment of N5 million, while additional investments can be made in multiples of N1 million.
Interest on the bond will be paid semi-annually at a fixed rate.
Principal repayment will begin in the third year through equal semi-annual amortised instalments until the bond matures in 2031.
Source: Getty Images
BOI bond is tax-exempt
The bond is exempt from tax, which could make it attractive to investors seeking fixed-income investments.
The tax exemption means eligible investors can potentially retain the full interest income payable under the bond, subject to applicable investment rules.
The issuance comes amid expectations of declining interest rates, which could increase demand for longer-term fixed-income securities offering relatively attractive yields.
BOI said the fundraising would strengthen its ability to provide long-term financing to Nigerian businesses and support investment, job creation and economic development across priority sectors.
FG opens portal for Nigerians to apply for N1m
Earlier, Legit.ng reported that the federal government has outlined the application process for Nigerians seeking affordable financing to purchase laptops, smartphones, tablets, and other digital devices under the Credit for Laptops, Internet, Connectivity, and Knowledge Digital Devices (C.L.I.C.K.D.) Programme.
The programme is being implemented through the Nigerian Consumer Credit Corporation (CREDICORP) to make digital devices more accessible to eligible Nigerians through consumer financing.
Interested applicants must first submit their details via an online registration form to be considered for the initiative.
Source: Legit.ng
