Bank of Industry opens N250bn bond to fund Nigerian businesses

The Bank of Industry is raising up to N250bn through its inaugural Series 1 Fixed Rate Bond, with subscriptions open from August 5 to August 11, 2026. The five-year bond carries a yield of between 17.35% and 17.50% and has received AAA ratings from two credit agencies.

The offer, issued through BOI Financing SPV Plc, is open to institutional and qualified investors. A minimum subscription is N5 million, with additional investments in multiples of N1 million.

How the funds will be used

Proceeds will finance businesses across sectors including agriculture and food processing, healthcare, engineering and technology, renewable energy, petrochemicals, oil and gas, creative industries, and 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.

Bond terms and investor appeal

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.

The bond is exempt from tax, which could make it attractive to investors seeking fixed-income investments. The issuance comes amid expectations of declining interest rates, which could increase demand for longer-term fixed-income securities offering relatively attractive yields.

BOI's track record

BOI said it has provided funding to more than one million businesses across Nigeria and disbursed over N1.27 trillion between 2023 and 2025. 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. The fundraising is aimed at strengthening its ability to provide long-term financing to Nigerian businesses and support investment, job creation, and economic development across priority sectors.

For Nigerian businesses, the bond signals a fresh pipeline of patient capital for critical sectors, with the tax-exempt status and relatively high yields likely to draw fixed-income investors.