Nigeria’s leading independent energy company, Seplat Petroleum Development Company Plc, on Sunday announced the listing of $650m in aggregate principal amount of senior notes due 2026, on both the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE).
The Notes priced at a yield of 7.75%, the company said in a statement, representing a significant pricing reduction from its $350m debut issuance in 2018, which priced at a yield of 9.50%, with a coupon of 9.25%.
The size, the company noted, represents the largest ever Nigerian oil and gas bond issuance, adding that the offering was well oversubscribed, a breakdown of which showed demand from 120 global investors spread across over 20 countries.
This, it added, resulted in a final overbook in excess of $1.1bn, which was 1.7 times book coverage, with orders coming from high quality institutional investors with long term commitments to Seplat, in addition to new institutional investors.
The transaction was well received in the market and traded above par post-pricing.
The transaction, it continued, was a display of confidence by the international capital market in the Nigerian economy and its 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 were Citi, J.P. Morgan, Standard Bank, and Standard Chartered Bank, with Natixis, Rand Merchant Bank, and Société Générale acting as Joint Bookrunners, while FCMB Capital Markets, Nedbank, United Bank for Africa, and Zenith Bank Plc acted as Co-Managers.