Ardova Plc (AP) has announced the successful completion of N25.3 billion Series 1 Fixed Rate Senior Unsecured Bond issue under its N60 billion debt issuance programme.
The Chief Executive Officer of AP, Mr Olumide Adeosun, said in a statement on Wednesday in Lagos that the bond issue was the largest local currency bond issuance by an indigenous oil and gas company in the history of the Nigerian debt capital market.
He said the offer was 143 per cent subscribed and comprised seven-year tranche A and 10-year tranche B bonds.
Adeosun explained that the seven-year tranche A was priced at 13.30 per cent, while the 10-year tranche B was priced at 13.65 per cent.
He said that the bond issuance attracted participation from a diverse range of institutional investors including pension funds and asset managers.
Adeosun said the strong level of oversubscription demonstrated investor confidence in Ardova’s niche position as a leading indigenous integrated energy company.
He noted that the proceeds would be used to fund expansion projects and enhance working capital requirements.
Adeosun expressed delight at the overwhelming success of the offer and thanked the issuing houses and other professional parties for working tirelessly to ensure the timely and successful completion of the bond issue.
“We are humbled by the warm reception of our Series 1 (Tranche A and Tranche B) bonds issue by Nigeria’s ever growing institutional investor community.
“The seven-year and 10-year tranches will 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 market 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 market as a fundamental part of our funding strategy on our journey toward being the largest supplier of energy in Nigeria,” he said.
Mr Chuka Eseka, Managing Director/Chief Executive Officer of Vetiva Capital Management Ltd., was quoted by the statement, as saying that the company was delighted to be part of the landmark transaction.
“Vetiva is delighted to have provided Ardova with full-scope advisory and issuing house services on the Issue.
“The success of the transaction demonstrates investors’ confidence in the management, vision and purpose of the Ardova team and we thank the board and management of Ardova for giving Vetiva the opportunity to lead on this landmark transaction,” Eseka said.
Also commenting, Mr Funso Akere, Chief Executive Officer of Stanbic IBTC Capital, said the company was delighted to participate in the bonds issuance.
“Stanbic IBTC Capital is delighted to have advised Ardova on its successful return to the Nigerian debt capital market.
“We thank the institutional investor community for supporting the bond issue, as its success should encourage other similar companies to access the domestic debt capital markets for their strategic funding needs.
“We also thank the board and management of Ardova for giving the issuing houses a free hand to guide the process and look forward to working closely with Ardova on subsequent issuances under its N60 billion debt issuance programme,” Akere said.
