RMB Leads Paras Energy’s N15bn Five-Year Bond Offering

Nume Ekeghe

Rand Merchant Bank Nigeria Limited (RMB Nigeria) has acted as Lead Issuing House and Bookrunner on the successful N15 billion five-year fixed-rate senior unsecured bond issued by Paras Energy Funding SPV Plc under its N25 billion bond issuance programme.

The issuance, which carries a coupon of 18 per cent per annum, marks the inaugural bond from the SPV and represents a landmark transaction for Paras Energy and Natural Resources Development Limited (Paras Energy).

Paras Energy is a privately held energy company operating across the full power value chain, spanning power generation, solar engineering, procurement and construction, substations, transmission infrastructure, and operations and maintenance. The company is a member of the African Industries Group (AIG or the Group), a diversified industrial conglomerate with deep roots in the Nigerian economy and over five decades of operations in the country.

The transaction represents the first time a privately held company in the power sector is issuing an unwrapped bond for its first issuance. Proceeds of the Bond will be strategically deployed to expand Paras Energy’s generating capacity and accelerate its growth as an independent power plant operator, while deepening its client portfolio across West Africa.

Commenting on the Bond Issuance, Group Chief Financial Officer, African Industries Group, Mr. Munish Modi, said: “This successful issuance marks a defining moment for Paras Energy and the African Industries Group. As a pioneer private power supplier to the national grid, we are proud to further demonstrate our commitment to Nigeria’s energy security through innovative financing. The strong investor support affirms our strategy, operational track record, and mission to unlock productivity across the West African economy.”

Also, the Head of Debt, Capital Markets Nigeria, RMB Nigeria, Laju Atake, highlighted that: “We are delighted to have advised Paras Energy on its successful debut bond issuance, providing end-to-end guidance across structuring, regulatory engagements and distribution, resulting in the best possible outcome for the company. This transaction demonstrates that well-positioned private sector participants in the power value chain can access long-term funding without reliance on guarantees and/or external support. RMB Nigeria remains deeply committed to deepening Nigeria’s debt capital markets and partnering with leading corporates to deliver innovative, well-structured, and sustainable financing solutions.”

The Executive Director, RMB Nigeria Head of Investment Banking Broader Africa, Chidi Iwuchukwu, added: “As Lead Issuing House, RMB Nigeria is proud to have partnered Paras Energy on this landmark transaction. The company’s ability to achieve full subscription on its first issuance highlights the depth of domestic liquidity and the importance of structuring, transparency, and credit quality in attracting institutional capital. We expect this to pave the way for increased participation by private issuers in the power sector, supporting greater capital mobilisation and accelerating sectoral growth.”