The Nigerian Stock Exchange (NSE), yesterday listed the Axxela Funding 1 Plc’sN11.5 billion Series 1, 14.3 per cent Fixed Rate Bond due 2027. Axxela recently raised the bond under its N50 billion Issuance Programme. were today, Thursday, 16 July2020listed on The Nigerian Stock Exchange. The bond was originally N10 billion but at the conclusion of the book build, the 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. Hence, the it ended up with a total proceeds of 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.”