Follow Us on Google
From Isaac Anumihe, Abuja
Nigeria Bulk Electricity Trading (NBET) has announced the successful completion of the first tranche of its ₦4 trillion Power Sector Bond Programme.
In a statement, NBET said it was pleased to announce the successful close of the first tranche under the ₦4,000,000,000,000 Power Sector Multi-Instrument Issuance Programme.
The inaugural bond issue of ₦501,021,000,000 comprises a fully subscribed ₦300,000,000,000 bond issuance to the market (asset managers, banks, pension funds and retail investors) and a ₦201,021,000,000 bond issued to power generation companies (GenCos) that have signed the settlement agreement.
The seven-year bonds, which were issued by NBET Finance Company Plc (a special purpose vehicle established for this transaction), are fully guaranteed by the full faith and credit of the Federal Government of Nigeria.
According to NBET, the successful completion of the inaugural tranche marks a critical milestone in the implementation of the programme and reflects strong market confidence in the government’s reform agenda for the power sector.
Other News
Commenting on the bond issue, the Acting Managing Director of NBET, Mr Johnson Akinnawo, said: “The successful close of the ₦501 billion bond represents a major step forward in resolving the long-standing challenge that has constrained the power sector for years. This intervention will significantly improve liquidity across the value chain, enable operators to stabilise their operations and support renewed investment in the Nigerian power sector.”
A leading investment banking firm in Nigeria, CardinalStone Partners Limited, led the consortium of appointed professional parties as lead financial adviser and lead issuing house to successfully execute the ₦501,021,000,000 Series 1 bond issue, working closely with the Nigerian Bulk Electricity Trading Plc, which acted as sponsor on the transaction, and the Office of the Special Adviser on Energy, which led the settlement negotiations and engagements with the generation companies.
In addition to the professional advisers, the Acting Managing Director of NBET further acknowledged the support of all members of the Presidential Power Sector Debt Reduction Committee, particularly the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, whose leadership and support provided the bedrock for this success, and all who played vital roles in making the capital raise a success, all key power sector stakeholders, as well as government authorities like the Debt Management Office, Central Bank of Nigeria, the Securities and Exchange Commission, the National Pensions Commission, the Federal Inland Revenue Service and the Nigerian Electricity Regulatory Commission, who facilitated enhancements for the bond issue.
“These settlements form part of Phase 1 of the programme, which is designed to restore liquidity to the power sector, strengthen the balance sheets of critical market participants and create a more sustainable foundation for electricity supply in Nigeria,” he said, adding that NBET remains committed to working closely with the Federal Government, market participants and transaction advisers to ensure the transparent and efficient deployment of proceeds in line with the objectives of the Presidential Power Sector Debt Reduction Programme.
NBET, he noted, reaffirmed its commitment to market reforms aimed at enhancing the long-term financial viability of Nigeria’s electricity market.
