Seplat Petroleum Development Company Plc, a leading Nigerian independent energy Company, has raised the bar in the Nigerian Oil & Gas sector with a bullish issue of $650 million five-year bond. It is the first of its kind in the Nigerian business ecosystem.
Listed on both the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE), the deal has priced Seplat’s offering of $650 million in aggregate principal amount of senior notes, which will fall due in 2026.
The Notes priced at a yield of 7.75%, representing a significant pricing reduction from its $350 million debut issuance in 2018, which priced at a yield of 9.50% , with a coupon of 9.25%.
The size represents, the largest ever Nigerian oil and gas bond issuance.
An insider statement said the offering has beeb well oversubscribed, with demand from 120 global investors from more than 20 countries, resulting in a final overbook in excess of $1.1bn. This amounts to 1.7 times book coverage.
It said 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 in particular, with a number 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 Bookrunners. The FCMB Capital Markets, Nedbank, United Bank for Africa and Zenith Bank Plc. are acting as Co-Managers.
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