Ardova Plc has announced the completion of its N25.3bn bond issue under its N60bn debt issuance programme to expand and diversify its operations and increase its footprint across the country.
The integrated energy company said in a statement that the fixed-rate senior unsecured bond was 143 per cent subscribed and comprised a seven-year Tranche A bond priced at 13.3 per cent and a 10-year Tranche B bond priced at 13.65 per cent.
According to AP, the bond was supported by an A rating from DataPro and an A-rating from GCR.
It said, “Vetiva Capital Management Limited and Stanbic IBTC Capital Limited acted as lead issuing house and joint issuing house respectively to the bond issue.
“Other professional parties include Banwo & Ighodalo and Aluko & Oyebode, who acted as solicitors to the issue and solicitors to the trustees respectively, and PricewaterhouseCoopers who acted as reporting accountants.”
Commenting on the issuance, the Chief Executive Officer of AP, Mr Olumide Adeosun, said, “We are humbled by the warm reception of our Series 1 Bonds Issue by Nigeria’s ever-growing institutional investor community. The seven-year and 10-year tranches 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.”
The Managing Director and Chief Executive Officer, Vetiva Capital Management Limited, Mr Chuka Eseka, was quoted as saying, “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.”
