Forte Oil Plc, a foremost-integrated energy service provider, has successfully completed its N9 billion series one debt issue.
The company in a statement to the Nigerian Stock Exchange, NSE, in Lagos said the bond was the first in the series of its proposed N50 billion-bond issuance programme.
The funds raised would be used to refinance existing short-term commercial bank loan obligations and the retail outlet expansion of the company.
Akin Akinfemiwa, the company’s group Chief Executive Officer, was quoted by the statement as saying that the successful raising of the initial capital showed investors confidence in the firm.
Mr. Akinfemiwa added that the bond offer was fully underwritten and showed the level of confidence, the investing public had in the company.
“This bond programme, being the first in the downstream sector, is testament to Forte’s position within the downstream sector,” he stated.
Mr. Akinfemiwa said the bond would allow the company to actualise the vision of the board to provide value to its shareholders regardless of the economic climate.
Julius Omodayo-Owotuga, Forte Oil Group Executive Director Finance and Risk, said that the bond raising would provide the necessary liquidity for the firm to realise its growth strategies and position the company for the future.
“The pricing of this debt instrument demonstrates the markets’ belief in us and the pricing would help reduce our borrowing cost and increase profitability in the short and long term,” Mr. Omodayo-Owotuga said.
He explained that the bonds would be listed on the Nigerian Stock Exchange (NSE) and FMDQ OTC Exchange until maturity date in 2021.
Mr. Omodayo-Owotuga said that United Capital Limited served as the lead Financial Advisor/Issuing House to the transaction, while Boston Advisory Ltd., FBN Capital Ltd., Planet Capital and Vetiva Capital Management were joint Financial Advisors/issuing House.