Forte Oil Plc, on Friday closed its N9bn Series 1 debt issue of its N50bn bond issuance programme to refinance an existing short term commercial bank loan obligations.
A statement by the company said proceeds of the bond is to finance its retail outlet expansion.
FO has an Issuer rating of A-long term and A1-short term by the Global Credit Rating Company (GCR).
According to Julius Omodayo-Owotuga, FO’s Group Executive Director Finance and Risk, “this series provides us with the necessary liquidity to actualize our growth strategies and positions the company for the years ahead.
“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 an long-term.”
The statement, signed by Doyin Ogun, FO’s head of investor relations, quoted Akin Akinfemiwa noted during the Completion Board Meeting that the “initial capital which has been fully underwritten shows the confidence the investing public has in Forte Oil Plc as an investment of choice.
“This bond programme being the first in the downstream sector, is testament to Forte’s position within the downstream sector and allows the company to actualize the vision of the board to continue to provide value to its shareholders regardless of the economic climate,” he added.
The bond, which be listed on the Nigerian Stock and FMDQ Over-the-Counter (OTC) exchanges until maturity date in 2021, has United Capital Limited as lead financial advisor/issuing house, while Boston Advisory Limited, FBN Capital Limited, Planet Capital Limited and Vetiva Capital Management Limited served as joint financial advisors/issuing houses.