Axxela lists N11.5 bln 7-year bonds on FMDQ platform
“Axxela Limited, owned by Helios Investment Partners N11.50 billion series 1 bond under its N50 billion debt programme has been admitted on the trading platform of FMDQ Securities Exchange Limited (FMDQ Exchange).
Axxela, gas & power portfolio company planned to raise a total of ₦50 billion debt from the country’s capital market to fund its operations.
The company had in May raised the N10 billion Seven-Year Fixed Rate Senior Secured BondIssue(under the N50 billion Bond Issuance Programme.
The bond which was oversubscribed by investors to the tune of 24 percent was later raised to a total of to N11.5 billion to accommodate some investor’s bids.
Bolaji Osunsanya, the chief executive officer of the company had said the proceeds of the debt will support the company’s multi-pronged growth strategy of optimising its operations and assets, expanding the firm 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,” Osunsanya said.
In a statement on Thursday, FMDQ said Axxela Funding 1 PLC is a special purpose vehicle (SPV) incorporated by Axxela Limited to raise funds through the issuance of debt securities in the domestic capital market.
“Axxela Limited, owned by Helios Investment Partners, is a natural gas shipping company on the West African Gas Pipeline, providing unique energy solutions with presence in Nigeria and gas export operations in neighbouring West African countries.
“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.
“Also, through the global visibility which the FMDQ website and systems guarantee, the corporate profile of the issuer is raised even further ahead of tapping into other opportunities in the Nigerian capital market,” it said.
The statement highlighted the roles of the DCM, which played an important role in the efficient mobilisation and allocation of resources in the economy and despite the impact of the current times, the market had continued to effectively support corporate firms looking to expand their business operations.
“It is in this regard that FMDQ Holdings PLC (FMDQ Group or FMDQ) in its role as a market organiser of the Nigerian DCM, amongst others, has continued to provide stakeholders in the Nigerian capital market with a credible and robust platform for capital access, risk management and transfer of value,” it said.