FCMB Capital Markets Limited has supported the Bank of Industry (BOI) in raising ₦274.19 billion through a five-year Development Bond.
The transaction, which was initially targeted at ₦250 billion, was increased following strong demand from investors.
The bond was issued through BOI Financing SPV Plc under the bank’s $1 billion Multi-Currency Instruments Programme.
The five-year bond carries a fixed interest rate of 17.60 per cent and is expected to mature in 2031.
FCMB Capital Markets acted as Joint Issuing House and Bookrunner for the transaction, helping BOI access funds from institutional investors across Nigeria.
According to details of the transaction, the offering attracted participation from pension fund administrators, banks, development finance institutions, corporates and other institutional investors.
The strong demand allowed BOI to exercise its green shoe option and raise an additional ₦24.19 billion above the initial target.
DDM News reports that the successful bond issuance provides BOI with additional long-term funding to support its development finance activities across different sectors of the Nigerian economy.
The Bank of Industry is Nigeria’s oldest and largest development finance institution, with a mandate focused on providing funding to businesses and projects that contribute to economic development.
The additional capital is expected to strengthen the bank’s ability to finance businesses, industrial projects and other productive activities.
The transaction also highlights the growing role of Nigeria’s domestic capital market in providing long-term funding to major institutions.
For investors, the bond offers a fixed return over five years, while BOI gains access to a substantial pool of naira funding that can be deployed over a longer period.
The participation of pension funds and other institutional investors is particularly significant, as these institutions control large pools of long-term capital that can support infrastructure, industry and other development-related investments.
FCMB Capital Markets’ role in the transaction also underscores the importance of investment banking firms in connecting large institutions with investors through the capital market.
By acting as Joint Issuing House and Bookrunner, the firm supported the structuring and distribution of the bond and helped facilitate investor participation.
DDM News gathered that the transaction comes at a time when access to long-term financing remains important for Nigerian businesses and institutions seeking to expand operations and support investment.
The successful upsizing of the bond indicates that the offering generated sufficient investor interest to exceed its original target.
For BOI, the transaction provides another funding channel beyond traditional sources and gives the institution greater capacity to pursue its development financing mandate.
The bank can use such funding to support enterprises and projects that contribute to job creation, industrial growth, local production and economic diversification.
The deal also demonstrates how domestic savings can be channelled through the capital market into activities that support the wider economy.
As financial institutions continue to seek sustainable sources of long-term funding, transactions of this nature could remain an important part of Nigeria’s capital market development.
The ₦274.19 billion bond therefore represents a major fundraising exercise for BOI and another significant transaction for FCMB Capital Markets in Nigeria’s debt market.
The successful completion of the offering further strengthens the connection between institutional investors, the domestic capital market and development financing in Nigeria.
