Axxela Limited (Axxela), a portfolio company whose vision is to be the preferred gas & power firm in sub-Saharan Africa, has successfully achieved a dual-listing of Axxela Funding 1 PLC N11.5billion Series 1 Bond, on the Nigerian Stock Exchange (NSE) and the Financial Market Dealers Quotation, over-the-counter (FMDQ-OTC) market.
The Senior Secured Bond Issue with a 7-year fixed rate is part of its N50 billion Debt Issuance Programme issued through a special purpose vehicle – Axxela Funding 1 PLC. To commemorate the successful debut on the NSE, Axxela’s Chief Executive Officer, Bolaji Osunsanya rang the closing gong on Thursday, July 16, 2020.
Speaking at the virtual event, he stated, “We are extremely pleased, as this is another first for us the first corporate bond issuance in Nigeria’s midstream space. The success of this issue and subsequent listings, are significant indicators of the increasing investor confidence in our company’s reputation, brand, and performance. Our milestone debut market entry also emphasises the necessary collaboration between private entities and debt capital markets, as it enables us to pursue our multi-pronged growth strategy of optimising our operations and assets, expanding our footprint, and revolutionising the midstream sector. The bond proceeds will be used to support our enterprise on many fronts, but largely for growth projects, signifying the importance of local and international capital markets in the development of critical infrastructure.”
Commenting on the listing, the Chief Executive Officer of the NSE, Oscar N. Onyema, OON, said: “We would like to congratulate Axxela for its commitment and achievement in building this reputable brand which operates in the West African gas space. It is worthy of note that this issue which marks Axxela’s debut debt issuance was oversubscribed, giving an indication of the level of confidence in Axxela’s brand and corporate performance. NSE remains the trusted business partner in achieving your business strategy and is committed to helping issuers derive great value from their interaction in the market.”
A statement from FMDQ said: “The admittance of the Axxela bond is testament to the opportunities which the Nigeria Debt Market Capital (DCM) avails to corporates in diverse business areas and further, to the potential of the market to support stakeholders effectively even as they carry on their activities in the face of the pandemic.
The Axxela bond, by its listing on FMDQ, shall be admitted onto the FMDQ Daily Quotations List; thus, promoting the much-needed transparency for investors and providing a credible basis for portfolio valuation daily.
Parties to the transaction are Chapel Hill Denham Advisory Limited and Stanbic IBTC Capital Limited as Lead Issuing Houses, 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.
Axxela is a Helios Investment Partners LLP portfolio company, and a designated natural gas shipper on the West African Gas Pipeline (WAGP). Axxela is also the pioneering private sector-led developer of natural gas distribution in Nigeria, delivering at peak 80 million standard cubic feet per day to over 180 industrial and commercial customers via a vast network of gas infrastructure.
With over 309 km in gas pipeline infrastructure built, Axxela provides unique energy solutions primarily through its subsidiaries: Gaslink Nigeria Limited, Gas Network Services Limited, Central Horizon Gas Company Limited, and Transit Gas Nigeria Limited.