Categories: Business

Seplat Issues Historic $650m Five-year Bond, Becomes Nigeria’s Largest-ever Oil and Gas Bond Issuer

Seplat Petroleum Development Company Plc (Seplat), a leading Nigerian independent energy company listed on both the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE), has priced its offering of $650 million in an aggregate principal amount of senior notes due 2026 (the notes).

The notes were priced at a yield of 7.75 per cent, representing a significant pricing reduction from its $350 million debut issuance in 2018, which priced at a yield of 9.50 per cent, with a coupon of 9.25 per cent. The size represents the largest ever Nigerian oil and gas bond issuance.

The offering was oversubscribed with demand from 120 global investors from more than 20 countries resulting in a final overbook in excess of $1.1 billion, which was 1.7 times book coverage.

Orders came from high-quality institutional investors with long-term commitments to Seplat as well as new institutional investors. The transaction was well received in the market and traded above par post-pricing.

The transaction shows confidence by the international market in the Nigerian economy and the oil and gas sector, with some of the investors committing to the transaction based on the strong gas story of Seplat.

The Global Coordinators on the transaction are Citi, J.P. Morgan, Standard Bank and Standard Chartered Bank, with Natixis, Rand Merchant Bank and Société Générale acting as joint book-runners and FCMB Capital Markets, Nedbank, United Bank for Africa and Zenith Bank Plc acting as co-managers.

Goddy Egene

Follow us on:

AriseNews

Recent Posts

Iran’s Supreme Leader Threatens ‘Crushing Response’ To US And Israeli Actions Amid Ongoing Tensions

Iran's Supreme Leader has warned the US and Israel of a "crushing response" following an…

19 mins ago

Kemi Badenoch Wins Conservative Leadership, Vows Party Renewal, A Return to Traditional Values

Kemi Badenoch has pledged to "renew" the Conservative Party and reclaim voters as she was…

5 hours ago

Peter Obi Criticises Court Ruling Halting Rivers State Funds, Calls for Reversal

Peter Obi has criticised the court ruling withholding funds to Rivers State, calling it disturbing…

11 hours ago

AGF Fagbemi Takes Over Prosecution of #EndBadGovernance Protesters Amidst Allegations of Treason

AGF Fagbemi has taken over the prosecution of 114 #EndBadGovernance protesters, addressing alleged treason and…

11 hours ago

NNPC, ONHYM Advance African Atlantic Gas Pipeline Project Amid Regional Collaboration

NNPC and Morocco's ONHYM has advanced the $26 billion African Atlantic Gas Pipeline, emphasising regional…

11 hours ago

TCN Restores Power Supply Through Gombe-Damaturu-Maiduguri Line

TCN has restored power on the Gombe-Damaturu-Maiduguri line, fully operational again after vandalism halted service.

11 hours ago