HomeNewsAxxela Surpasses Target with N16.4 Billion Bond Issuance

Axxela Surpasses Target with N16.4 Billion Bond Issuance

Published on

Nigerian gas and power company, Axxela Limited, has defied tough economic conditions by raising N16.4 billion through a bond issuance, exceeding their initial target of N15 billion.

Strong Investor Appetite Fuels Oversubscribed Offering

The Series 1 Bond Issuance, launched under Axxela’s newly established N50 billion Multi-Instrument Issuance Programme, attracted significant interest from a diverse group of investors. Pension funds, asset managers, and high-net-worth individuals all participated in the offering, reflecting strong confidence in Axxela’s financial health and market position. This robust demand resulted in a 109% oversubscription, highlighting investor confidence in the company’s future.

The proceeds from the bond issuance will be used to fund Axxela’s long-term capital expenditures, manage its financing costs, and diversify its funding sources. This additional capital will be instrumental in achieving the company’s strategic objectives. Stanbic IBTC Capital played a pivotal role as the Lead Issuing House, working alongside seven Joint Issuing Houses to facilitate the successful transaction. Stanbic IBTC Bank served as the transaction bank.

Axxela CEO Expresses Gratitude and Highlights Growth Plans

Commenting on the successful fundraising, Axxela’s Chief Executive Officer, Bolaji Osunsanya, expressed his gratitude to Nigerian capital market investors for their continued trust in the Axxela brand. He emphasized this oversubscribed issuance as a testament to investor confidence in the company’s reputation, brand, and performance.

Osunsanya further underscored the importance of the bond issuance, stating it exemplifies the positive collaboration between private entities and debt capital markets. This access to capital allows Axxela to pursue its multi-pronged growth strategy, which includes optimizing operations and assets, expanding its footprint, and revolutionizing the energy sector. The bond proceeds will directly support the development of Axxela’s growth projects, highlighting the crucial role of local and international capital markets in financing critical infrastructure developments.

Osunsanya remains optimistic about Axxela’s future trajectory, particularly considering the global shift towards cleaner and more affordable energy solutions. With natural gas playing a central role in Nigeria’s energy transition agenda, Axxela is well-positioned as a partner of choice for large-scale projects in gas processing, pipeline infrastructure, virtual pipelines, last-mile distribution, and embedded power solutions.

Axxela: A Leader in Nigeria’s Gas Distribution Network

Axxela, a pioneer in developing Nigeria’s natural gas distribution network over two decades ago, has grown to become the country’s largest private-sector gas distribution company. Their operations encompass the entire natural gas value chain, including processing, transmission, distribution, trading, power generation, and distribution.

Axxela’s successful bond issuance underscores its financial strength and investor confidence. The additional capital will fuel the company’s growth plans and contribute to Nigeria’s energy transition goals. 

Source: Vanguard  

 

Latest articles

NCAA Summons 13 Airlines Over Growing Flight Delays, Cancellations

NCAA calls emergency meeting with 13 airlines over rising flight delays and cancellations, warning of tougher sanctions and stricter passenger protections

Dangote Refinery Says Tanker Strike Won’t Disrupt Fuel Supply

Dangote Refinery says tanker drivers’ strike will not affect fuel supply, reassuring Nigerians of stable operations and uninterrupted distribution systems.

United Nigeria Airlines Strikes Boeing Deal With Southwest

United Nigeria Airlines Boeing fleet deal with Southwest boosts expansion, adding six aircraft and technical support for regional and global operations.

Jonathan’s Camp Courts Peter Obi for 2027 Election

Jonathan courts Peter Obi as PDP pushes a Southern coalition to take on Tinubu in 2027, despite doubts over Jonathan’s eligibility.

More like this

NCAA Summons 13 Airlines Over Growing Flight Delays, Cancellations

NCAA calls emergency meeting with 13 airlines over rising flight delays and cancellations, warning of tougher sanctions and stricter passenger protections

Dangote Refinery Says Tanker Strike Won’t Disrupt Fuel Supply

Dangote Refinery says tanker drivers’ strike will not affect fuel supply, reassuring Nigerians of stable operations and uninterrupted distribution systems.

United Nigeria Airlines Strikes Boeing Deal With Southwest

United Nigeria Airlines Boeing fleet deal with Southwest boosts expansion, adding six aircraft and technical support for regional and global operations.