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In a deal that signals growing depth in Nigeria’s domestic debt market, Quest Merchant Bank Limited helped Bank of Industry Financing SPV PLC raise N250 billion through an oversubscribed five-year fixed-rate bond, mobilising long-term capital for businesses in agriculture, manufacturing, energy and other priority sectors.
The offer, which ran from August 5–11, 2026, attracted strong institutional demand and will be listed on FMDQ Securities Exchange following regulatory completion, a statement from the bank said on Monday.
This reflects strong appetite from pension fund administrators, commercial banks, development finance institutions, corporates and other institutional investors. Anchor support for the transaction was provided by the Nigeria Sovereign Investment Authority (NSIA) and the International Finance Corporation (IFC), further boosting market confidence in the issuance.
The bond issued under BOI’s US$1 billion Multi-Currency Instruments Programme and the five-year fixed-rate bond carries semi-annual coupon payments and is structured with a two-year principal moratorium followed by equal amortising instalments to maturity in 2031.
Furthermore, the bond received AAA ratings from Agusto & Co. and Intelligence Africa. During the book-building window, the bond was priced within a yield range of 17.35 per cent–17.50 per cent, with some market reports indicating final pricing around 17.60 per cent as demand intensified.
The attractive pricing, coupled with BOI’s sovereign-backed profile and the AAA ratings, helped drive the oversubscription and broad investor participation across the domestic institutional base.
Commenting on the transaction, Managing Director/CEO of Quest Merchant Bank, Afolabi Olorode, said the deal “goes beyond raising capital” by connecting institutional investors with the real economy and creating a platform that enables Nigerian businesses to grow, invest and compete.
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He added that serving as Joint Lead Issuing House on an issuance of this scale demonstrates the capacity of Nigeria’s capital markets to mobilise long-term funding for productive activity, and reaffirmed Quest’s commitment to structuring solutions that deliver value for both issuers and investors while supporting economic development.
Also speaking, Managing Director, BOI, Dr Olasupo Olusi, credited the strong investor response to improved market confidence under President Bola Tinubu’s leadership, as well as targeted incentives that made the bond more attractive to long-term holders.
Proceeds from the bond will be deployed to long-term financing across priority sectors, including agriculture and food processing, healthcare, engineering and technology, renewable energy, petrochemicals, oil and gas, creative industries and solid minerals.
By extending tenors and lowering reliance on short-term funding, the transaction supports BOI’s mandate to catalyse industrialisation, job creation and export competitiveness through patient capital.
Market participants described the issuance as a benchmark for future development-finance bonds in Nigeria, showing that domestic institutional savings can be mobilised at meaningful scale for infrastructure and productive-sector investment.
For Quest Merchant Bank, the deal strengthens its track record in development-finance capital markets and positions the institution as a key intermediary between large public-purpose issuers and Nigeria’s growing pool of long-term institutional capital.
