Forte Oil, an indigenous downstream oil company has just floated a NGN9 billion bond on the Nigerian Stock Exchange.
It could be recalled the Forte Oil had floated a NGN50 billion debt instrument last year.
In a statement issued by the NSE, proceeds of the N9 Billion Series 1, Five Year bond will be deployed to refinance existing short term commercial bank loan obligations.
Forte Oil also plans to expand downstream retail outlet footprints across the country.
“This bond programme, being the first in the downstream sector, is a testament to Forte Oil’s leading position within the downstream sector”.
Speaking on the listing, Haruna Jalo-Waziri, Executive Director, Capital Market Division, NSE said “we are pleased to be a partner to Forte Oil in its quest to expand its franchise by raising fresh capital through bonds. As the pioneer Exchange, we will continue to provide our issuers with bespoke financing options that will place them in vantage position to compete regionally and globally”.
The year seems to have started on a busy note for the Exchange with spate of listings on the bourse. So far, two companies, Medview Airline and Jaiz Bank were listed by introduction, Stanbic IBTC Asset Management Limited listed Pension ETF 40, while Top Services Limited listed a REITs.
United Capital Limited served is 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.
More capital raising are expected from major blue chips as Nigeria’s inflation continues to rise, recession lingers and consumer demand wanes.