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The Bank of Industry (BOI), Nigeria’s largest, oldest, and most profitable Development Finance Institution (DFI), assisted by Rand Merchant Bank (RMB) has issued a EUR700m Eurobond by way of 144A/RegS Senior Note Participation Notes, irrevocably and unconditionally guaranteed by the Federal Government of Nigeria.

According to a statement by RMB, the global coordinator and active bookrunner on the Eurobond, BOI, the first African National DFI to issue a public Eurobond, has a vision of transforming Nigeria’s industrial sector by providing financial and business advisory services for the establishment of large, medium and small enterprises, as well as for the modernization of existing businesses.

“BOI’s mandate is guided by Nigeria’s National Development Plan 2025 and Agenda 2050, which have the objective of lifting a hundred million Nigerians out of poverty in 10 years. The institution is tasked with providing financing for the development of micro, small and large enterprises. This deal represents the institution’s first Eurobond, the provision of the sovereign’s first Eurobond guarantee, as well as the first Euro-denominated transaction from Nigeria, creating a benchmark for other prospective issuers from the region.”

The statement explains that the five-year, Euro-denominated senior note instrument is guaranteed by the Federal Government of Nigeria and issued at a yield of 7.500%.

“BOI’s plan is to raise up to EUR500m, but successfully raised EUR700m after 1.5 times oversubscribed order book comprising of high-quality buy-and-hold international investors. The transaction was preceded by an extensive three-day global virtual roadshow, including a global investor call, primarily involving engagement with investors across the UK, Continental Europe, and the US.

“The notes are to be listed on the London Stock Exchange and have ratings of B2 (Stable outlook) and B (Stable outlook) from rating agencies Moody’s and Fitch respectively.


“RMB was appointed as global coordinator and active book-runner for the transaction alongside other banks, with RMB assisting the issuer to ensure that BOI’s unique credit story and the developmental impact was best articulated to a diverse global investor base.”

Said Chidi Iwuchukwu, Head of Investment Banking, RMB West Africa: “It is extremely satisfying to work closely with the Nigerian DFI to bring to fruition their developmental objectives to create jobs and enable growth and sustainability for businesses in different sectors of Nigeria’s economy. International issuance by West African clients has continued to grow and RMB is proud to have had the opportunity to assist an indigenous entity to access capital for growth, globally.”


As of November 2021, BOI had total assets of US$4.3bn and has a 60+ year developmental track record. The Institution supports projects with potential developmental impact and has supported circa three million enterprises and created seven million jobs since 2015. The Bank has also focused on emerging sectors that are typically underserved by other financial institutions such as the youth segment, female-owned businesses, renewable energy, and the entertainment industry.

Olukayode Pitan, Managing Director and Chief Executive at BOI, said the issuance is aligned with Agenda 2050 and Nigeria’s National Development Plan 2025: “Agenda 2050 is Nigeria’s long-term national development plan targeted at ensuring sustained national development, as well as support Nigeria’s regional and global strategic interests. The objectives of the agenda are to lift 100 million Nigerians out of poverty in 10 years, sustain national development and support regional and global strategic interests.”


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