The issue of bonds worth NGN 60 billion called on experience from across Nigeria’s legal and finance sectors.
Nigerian energy company Ardova has issued NGN 60 billion (USD 146 million) in bonds as part of a debt issuance programme, raising funds for expansion and its working capital.
Headquartered in Lagos, Ardova operates downstream retail and supply businesses, including aviation fuel, motor oil and lubricants in Nigeria and Ghana, and has invested in the power plant sector.
In a statement, Ardova chief executive Olumide Adeosun said the measures “provide Ardova with the much-needed flexibility to expand and diversify our operations as well as increase our footprint across the country”.
“Our relationship with Nigeria’s debt capital markets commenced in December 2016 with the issuance of the company’s debut bonds. This landmark transaction evidences our commitment to nurturing this relationship and adopting the debt capital markets as a fundamental part of our funding strategy on our journey towards being the largest supplier of energy in Nigeria,” he added.
Nigerian-headquartered financial services provider Vetiva Capital Management and Stanbic IBTC Capital , a Nigerian subsidiary of Standard Bank , functioned as lead and joint issuing houses to the bond issue.
Vetiva managing director and chief executive Chuka Eseka commented: “The success of the transaction demonstrates investors’ confidence in the management, vision and purpose of the Ardova team.”
Stanbic IBTC chief executive Funso Akere said of the bond issue that “its success should encourage other similar companies to access the domestic debt capital markets for their strategic funding needs”.
Legal advice to the trustees to the issuance came from Aluko & Oyebode , in the form of capital markets partner Ayodeji Oyetunde and associates Kareemat Ijaiya and Gregory Yinka‑Gregg .
Banwo & Ighodalo advised on the issue itself, while PwC handled the accounting.
Also last month, Aluko & Oyebode advised on a bond issuance by telecommunications company MTN Nigeria , while in October , Banwo & Ighodalo worked on a similar issuance by Access Bank .Back in April, Nigerian oil and gas operator Seplat Petroleum Development Company issued notes worth USD 650 million .
