.To complete Lekki/Epe pipeline infrastructure, others
Sub-Saharan African gas and power company, Axxela Limited, has completed its ₦15 billion Series one Bond Issuance.
Axxela Limited’s Chief Executive Officer, Bolaji Osunsanya, disclosed this at the bond signing ceremony held in Lagos.
The bond, issued under its newly established ₦50 billion Multi-Instrument Issuance Programme achieved an oversubscription at 109 per cent to close at ₦16.4 Billion.
The firm accomplished this financial milestone despite issuing the bond during challenging economic conditions, with rising interest rates and limited market liquidity.
According to Osunsanya, the offer attracted strong investor interest from a diverse investment group, including Pension Fund Administrators, Asset Managers, and individuals, underscoring robust confidence in its financial prospects and market position.
“The bond issuance will enable Axxela to fund its long-term capital expenditures, manage its weighted average cost of capital, and diversify its funding sources while meeting the company’s strategic objectives.
Stanbic IBTC Capital, acting as the lead issuing house for the bond issue alongside seven joint issuing houses, played a pivotal role in the transaction, with Stanbic IBTC Bank serving as the transaction bank,” he said.
Commenting on the fundraising, Osunsanya thanked Nigerian Capital Market investors for their sustained confidence in the Axxela brand, the organisation’s financial excellence, and its long-term strategic market aspirations.
Speaking at the bond signing ceremony, Osunsanya said he was optimistic about Axxela’s upward growth trajectory as global trends in the future energy mix showed a continued shift toward cleaner and more affordable energy solutions. He emphasised that with natural gas taking centre stage in the Federal Government’s energy transition agenda, Axxela was uniquely positioned as the partner of choice to actualise large-scale projects within the pipeline, virtual pipeline, gas processing, last mile distribution and embedded power solutions.
Chief Financial Officer, Axxela Limited, Timothy Ononiwu, said: “We are grateful for the success of the transaction, which speaks to the investors’ recognition of Axxela’s operating and financial performance over the years and the significant growth prospects across our value chain. We will continue to explore opportunities to diversify our funding sources and optimise our funding structure towards achieving our financial objectives. We appreciate the immense support from our advisors who guided us through this process and the investors who still believe in our story.”
