‘BOI’s N274bn Bond Signals Capital Market Growth’

Rand Merchant Bank (RMB) Nigeria has said the N274.18 billion domestic five-year fixed-rate Bond issuance by the Bank of Industry (BOI) reflects continued development of Nigeria’s capital markets.

The bond, which is due in 2031, was initially targeted at N250 billion but was increased to N274.18 billion following strong investor demand.

Rand Merchant Bank (RMB) Nigeria, which acted as Joint Issuing House, said the transaction was oversubscribed and attracted pension fund administrators, banks, insurance companies, asset managers, development finance institutions and other institutional investors.

Speaking on the bond issuance, Executive Director and Head of Investment Banking, Broader Africa, RMB Nigeria, Chidi Iwuchukwu, said “this transaction demonstrates the ability of Nigeria’s capital markets to mobilise long-term capital at scale.”

Iwuchukwu noted that the  participation reflected the capacity of Nigeria’s domestic capital market to support large-scale, long-term financing.

Noting that BOI plays an important role in industrialisation, enterprise growth and job creation, Iwuchukwu said “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 previous work with BOI, having 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 was part of the bank’s work with first-time issuers in Nigeria’s debt capital markets.

“Over the past nine months, we have advised five distinct issuers on their debut debt capital markets transactions in Nigeria,” Atake said.

He said BOI’s domestic bond issuance reflected the development of Nigeria’s capital markets and the need for institutions to access long-term capital.

RMB said the transaction adds to its work with BOI across the domestic and international capital markets and supports the mobilisation of long-term capital for economic development.

The bank also acknowledged the Securities and Exchange Commission, Central Bank of Nigeria, professional advisers, transaction parties, investors and other market participants involved in the issuance.