Ardova issues N25.3bn Series 1 Fixed Rate Bonds under a N60bn Debt Issuance Programme

Ardova Plc has announced the successful completion of a N25.3 billion Series 1 (Tranche A and Tranche B) Fixed Rate Senior Unsecured Bond Issue (“the “Bond Issue”) under its N60 billion Debt Issuance Programme.

The Bond Issue is the largest local currency bond issuance by an indigenous oil and gas company in the history of
the Nigerian debt capital markets.

According to the company, the Bond Issue was 143% subscribed and comprised 7-year Tranche A and 10-year Tranche B bonds. The 7-year Tranche A bonds priced at 13.30% and the 10-year Tranche B bonds priced at 13.65%. It attracted participation from a diverse range of institutional investors including pension funds and asset managers, supported by an A rating from DataPro and an A- rating from GCR. The strong level of over-subscription demonstrated investor confidence in Ardova’s niche position as a leading indigenous integrated energy company, its strong management team, business strategy and credit profile.

Ardova will apply the proceeds of the Bond Issue to fund expansion projects and its working capital requirements.

Vetiva Capital Management Limited and Stanbic IBTC Capital Limited acted as Lead Issuing House and Joint Issuing House respectively to the Bond Issue. Other professional parties include Banwo & Ighodalo and Aluko & Oyebode who acted as Solicitors to the Issue and Solicitors to the Trustees respectively, and PricewaterhouseCoopers who acted as Reporting Accountants.

Commenting on the issuance, Mr. Olumide Adeosun, Chief Executive Officer of Ardova, expressed delight at the overwhelming success of the Bond Issue and thanked the Issuing Houses and other professional parties for working tirelessly to ensure the timely and successful completion of the Bond Issue.

Adeosun also added: “We are humbled by the warm reception of our Series 1 (Tranche A and Tranche B) Bonds Issue by Nigeria’s ever growing institutional investor community. The 7-year and 10-year tranches provide Ardova with the much-needed flexibility to expand and diversify our operations as well as increase our footprint across the country. Our relationship with Nigeria’s debt capital markets commenced in December 2016 with the issuance of the Company’s debut bonds. This landmark transaction evidences our commitment to nurturing this relationship and adopting the debt capital markets as a fundamental part of our funding strategy on our journey towards being the largest supplier of energy in Nigeria.”

Chuka Eseka, Managing Director/Chief Executive Officer of Vetiva Capital Management Limited, speaking on the bond issuance said: “Vetiva is delighted to have provided Ardova with full-scope advisory and issuing house services on the Issue. The success of the transaction demonstrates investors’ confidence in the management, vision and purpose of the Ardova team and we thank the Board and management of Ardova for giving Vetiva the opportunity to lead on this landmark transaction. We are very proud to be associated with Ardova and look forward to extending our advisory capabilities to the Company on its other strategic initiatives.”

Also commenting, Funso Akere, Chief Executive of Stanbic IBTC Capital, said: “Stanbic IBTC Capital is delighted to have advised Ardova on its successful return to the Nigerian debt capital markets. We thank the institutional investor community for supporting the Bond Issue, as its success should encourage other similar companies to access the domestic debt capital markets for their strategic funding needs.  We also thank the Board and management of Ardova for giving the Issuing Houses a free hand to guide the process and look forward to working closely with Ardova on subsequent issuances under its ₦60 billion Debt Issuance Programme.”

Photo caption;
L-R: Mrs. Aniola Durosinmi – Etti Independent Non-Executive Director, Ardova Plc; Mr. Chuka Eseka – Chief Executive Officer, Vetiva Capital Management Limited; Mr. Olumide Adeosun – Chief Executive Officer, Ardova Plc; Mr. Moshood Olajide Chief Financial Officer, Ardova Plc; Mr. Eric Fajemisin – ED, Corporate And Transactional Banking Stanbic IBTC Bank and Mr. Olusola Adeeyo Independent Non-Executive Director, Ardova Plc at the signing ceremony for the Ardova Plc N25.3bn series 1 Bond issuance recently held in Lagos