By Benson Daniel
Quest Merchant Bank Limited has jointly led a N250 billion bond issuance by the Bank of Industry Financing SPV Plc, strengthening its role in Nigeria’s debt capital market and helping mobilise long-term funding for industrial and economic development.
The five-year fixed-rate bond, valued at N250 billion, was successfully raised through the capital market and attracted strong investor interest, with the offer reported to have been oversubscribed.
Quest Merchant Bank served as one of the Joint Lead Issuing Houses for the transaction, working alongside other financial institutions involved in structuring and executing the sizeable fundraising exercise.
The successful issuance comes at a time when access to long-term finance remains important for businesses and development-focused institutions seeking to support investment, infrastructure and productive activities across the country.
The Bank of Industry is Nigeria’s leading development finance institution and plays a major role in providing funding to businesses across manufacturing, agriculture, infrastructure, technology and other productive sectors.
By raising funds through the bond market, the institution can expand its capacity to provide longer-term financing while reducing reliance on short-term sources of funding.
For investors, the transaction also provides an opportunity to participate in a structured fixed-income instrument backed by the Bank of Industry’s financing activities, while contributing to the development of Nigeria’s domestic capital market.
Quest Merchant Bank’s involvement further highlights the growing role of merchant banks in arranging large-scale financing transactions and connecting institutional investors with opportunities in the Nigerian debt market.
The N250 billion transaction is expected to support the broader financing objectives of the Bank of Industry and contribute to efforts aimed at expanding access to capital for productive sectors of the economy.
The successful completion of the issuance also reflects continued investor appetite for carefully structured naira-denominated fixed-income instruments despite the changing conditions in Nigeria’s financial markets.
For the capital market, transactions of this size provide additional depth and create opportunities for institutional investors such as pension funds, asset managers and other large investors to deploy funds into development-oriented investments.
The deal therefore represents both a significant financing milestone for the Bank of Industry and another major transaction for Nigeria’s evolving debt capital market.
Leave a comment