By Adaobi Rhema Oguejiofor
Axxela Limited, a leading sub-Saharan African gas and power company, has completed its N15 billion Series 1 Bond Issuance, with an impressive oversubscription of N1.4 billion, bringing the total to N16.4 billion.
According to the Chief Executive Officer, Bolaji Osunsanya, the bond issuance, conducted under the company’s newly established N50 billion Multi-Instrument Issuance Programme, achieved an impressive 109% oversubscription despite challenging economic conditions.
Osunsanya attributed the success to strong investor confidence in Axxela’s financial prospects and market position, with a diverse investor base, including pension fund administrators, asset managers, and high-net-worth individuals, participating in the offer.
The funds raised will be utilized to finance long-term capital expenditures, manage the company’s weighted average cost of capital, and diversify its funding sources, aligning with Axxela’s strategic objectives.
Notably, the funds will support the completion of ongoing gas pipeline projects across Nigeria, among other initiatives. With natural gas playing a crucial role in the Federal Government’s energy transition agenda, Axxela is well-positioned as a partner of choice for large-scale projects, including virtual pipelines, gas processing, last-mile distribution, and embedded power solutions.
This achievement demonstrates Axxela’s commitment to driving growth and development in the energy sector, and its ability to navigate challenging market conditions.
