The International Finance Corporation (IFC), a member of the World Bank Group, has committed up to US$50 million equivalent as an anchor investor in the Bank of Industry's (BOI) ₦274.19 billion Series 1 Development Bond, alongside a separate US$50 million senior loan to the Nigerian development finance institution.
The investment forms part of an IFC financing package of up to US$100 million approved for BOI, combining participation in the domestic debt capital market with direct lending to expand the institution's capacity to finance micro, small and medium-sized enterprises (MSMEs).
BOI's inaugural domestic bond issuance, which closed in September 2026, was initially targeted at ₦250 billion but was increased to ₦274.19 billion following strong institutional investor demand. The five-year fixed-rate instrument, carrying a coupon of 17.60% and due in 2031, was issued through BOI Financing SPV Plc under the bank's US$1 billion Multi-Currency Instruments Programme.
IFC participated in the issuance alongside the Nigeria Sovereign Investment Authority (NSIA), pension fund administrators, banks, development finance institutions and other institutional investors. At least 10% of the bond proceeds is earmarked for MSME financing.
Chapel Hill Denham acted as Lead Issuing House, with Rand Merchant Bank Nigeria and FCMB Capital Markets also participating as Joint Issuing Houses. FCMB Capital Markets additionally acted as Bookrunner.
US$50 Million Senior Loan to Support MSME Financing
The second component of IFC's investment package is a US$50 million senior loan with a seven-year tenor, which BOI and IFC formally signed on November 3, 2026, at the Africa Financial Industry Summit (AFIS) in Luanda, Angola.
The agreement was executed by Dr. Olasupo Olusi, Managing Director and Chief Executive Officer of BOI, and Makhtar Diop, Managing Director of IFC.
At least 25% of the loan proceeds, accroding to the IFC, will be dedicated to women-owned or women-led MSMEs. The facility will support BOI's lending activities across productive sectors, including manufacturing, agriculture, renewable energy and the creative industries.
The two financing components are structured to strengthen BOI's access to longer-term funding while expanding the participation of domestic institutional investors in financing productive enterprises. IFC's anchor investment in the bond is expected to help mobilise additional private capital from pension funds, asset managers and other investors.
IFC Explores Advisory Support for BOI
Beyond the financing arrangements, IFC is exploring an advisory engagement with BOI covering women-owned MSME banking, corporate governance, environmental and social risk management, and sustainability reporting.
The proposed support is intended to strengthen the institution's capacity to expand financing to underserved businesses and priority sectors while improving its institutional and sustainability frameworks.
BOI is 99.99% indirectly owned by the Federal Government of Nigeria through the Ministry of Finance Incorporated and the Central Bank of Nigeria. Established in its current form in 2001, the institution provides long-term financing, guarantees and advisory services to businesses across manufacturing, agribusiness, healthcare, the creative industries and other productive sectors.
The investment adds to IFC's engagement with Nigeria's financial sector.
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