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Axxela N10 Billion Bond Records 124% Subscription
Axxela Limited, a portfolio company with a vision of becoming the preferred and fastest-growing gas & power firm in sub-Saharan Africa, has concluded the Axxela Funding 1 Plc Series 1 N10 billion Seven-Year Fixed Rate Senior Secured Bond Issue its under the N50 billion Bond Issuance Programme.
At the conclusion of the book build, the N10 billion issuance was 24 per cent oversubscribed, and this oversubscription presented the company with the mandate to accept an additional 15 per cent of the proposed issuance size. This brings the Series 1 total proceeds to N11.5 billion.
Speaking on the inaugural issuance, Chief Executive Officer, Axxela Limited, Bolaji Osunsanya said: “Our milestone debut market entry underpins the necessary symbiosis between private entities and debt capital markets. We appreciate the support of all corporates, professional parties, and investors involved in the ratification and issuance process. The favorable response indicates the level of investor confidence in our company’s reputation, brand, and performance. This funding will support our multi-pronged growth strategy of optimising our operations and assets, expanding our footprint, and revolutionising the midstream sector. As a prime portfolio company with demonstrated leadership within the sector, we remain uniquely positioned to satisfy the growing natural gas and energy demand across the sub-region.”
Also speaking, Chief Financial Officer, Axxela Limited, Tim Ononiwu said: “This is another remarkable feat in our growth story, and provides an appropriate financing mix for our enterprise. The oversubscription of our first capital market issuance in such a challenging market is testament to the strengths and prospects of our company. This success avails us the liquidity to implement our business plans, while lowering our cost of capital. In addition, we are well positioned to access the market in the future, giving us the opportunity to continuously provide real value for our shareholders.”