Business
Axxela’s initial N10 billion bond oversubscribed by 24%
BY OUR EDITOR
Axxela Limited, a Nigerian gas and power company, says its maiden N10 billion seven-year fixed rate Senior Secured Bond Issue has been oversubscribed by 24%.
The Series 1 Bonds were issued by Axxela Funding 1 PLC; a special purpose funding vehicle and wholly-owned subsidiary of Axxela Limited.
“At the conclusion of the book build, the N10 billion issuance was 24% subscribed, and this oversubscription presented the company with the mandate to accept an additional 15% of the proposed issuance size. This brings the Series 1 total proceeds to N11.5 billion,” the company said in a statement.
Speaking on the inaugural issuance, Axxela’s Chief Executive Officer, Bolaji Osunsanya said: “Our milestone debut market entry underpins the necessary symbiosis between private entities and debt capital markets. We appreciate the support of all corporates, professional parties, and investors involved in the ratification and issuance process.
“The favourable response indicates the level of investor confidence in our company’s reputation, brand, and performance. This funding will support our multi-pronged growth strategy of optimising our operations and assets, expanding our footprint, and revolutionising the midstream sector.
“As a prime portfolio company with demonstrated leadership within the sector, we remain uniquely positioned to satisfy the growing natural gas and energy demand across the sub-region.”
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Also speaking, Axxela’s Chief Financial Officer, Tim Ononiwu said: “This is another remarkable feat in our growth story, and provides an appropriate financing mix for our enterprise. The oversubscription of our first capital market issuance in such a challenging market is testament to the strengths and prospects of our company. This success avails us the liquidity to implement our business plans, while lowering our cost of capital. In addition, we are well positioned to access the market in the future, giving us the opportunity to continuously provide real value for our shareholders.”
Axxela’s strategic diversification plans include a ramp up of its gas supply and trading activities across West Africa, alongside the build out of key power and virtual pipeline infrastructure.
Chapel Hill Denham Advisory Limited and Stanbic IBTC Capital Limited were Lead Issuing Houses for Axxela, while Afrinvest (West Africa) Limited, FBNQuest Merchant Bank Limited, Rand Merchant Bank Nigeria Limited, Renaissance Securities (Nigeria) Limited, and Vetiva Capital Management Limited were Joint Issuing Houses on the transaction.