May 22, 2020 (Lagos, Nigeria) — Axxela Limited (“Axxela”), 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 NGN10 billion Seven-Year Fixed Rate Senior Secured BondIssue(under theNGN50 billion Bond Issuance Programme).
The Series 1 Bonds were issued by Axxela Funding 1 PLC; a special purpose funding vehicle and wholly-owned subsidiary of Axxela Limited.
At the conclusion of the book build, the N10 billion issuance was 24% subscribed, and this oversubscription presented the Company with the mandate to accept an additional 15% of the proposed issuance size. This brings the Series 1 total proceeds to N11.5 billion.
Speaking on the inaugural issuance, Axxela’s Chief Executive Officer, Bolaji Osunsanya remarked: “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.”
Axxela’s strategic diversification plans include a ramp up of its gas supply and trading activities across West Africa, alongside the build out of key power and virtual pipeline infrastructure.
Axxela’s Chief Financial Officer, 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.”
Chapel Hill Denham Advisory Limited and Stanbic IBTC Capital Limited wereLeadIssuing Houses for Axxela, while Afrinvest (West Africa) Limited, FBNQuest Merchant Bank Limited, Rand Merchant Bank Nigeria Limited, Renaissance Securities (Nigeria) Limited, and Vetiva Capital Management Limited were Joint Issuing Houses on the transaction.
Axxela is a Helios Investment Partners LLP portfolio company, and a designated natural gas shipper on the West African Gas Pipeline (WAGP). Axxela is also the pioneering private sector-led developer of natural gas distribution in Nigeria, delivering at peak 80 million standard cubic feet per day to over 180 industrial and commercial customers via a vast network of gas infrastructure. In 20 years, Axxela has built over 309km in gas pipeline infrastructure, and provides unique energy solutions primarily through its subsidiaries: Gaslink Nigeria Limited, Gas Network Services Limited,Central Horizon Gas Company Limited and Transit Gas Nigeria Limited. Axxela is rated BBB+/PositiveStable by Agusto & Co and Bbb+/Stable by GCR.