Forte oil raises N9bn Series 1 debt issuance

One of Nigeria’s foremost integrated energy service providers, Forte Oil Plc, said it has successfully closed its N9 billion Series 1 debt issue.

The company noted that this is the first series of its proposed N50 billion bond issuance programme.

In a statement released on the website of the Nigerian Stock Exchange, the company informed that the Funds raised will be used to refinance existing short term commercial bank loan obligations.

It also propose to use part of the funds raised to finance the retail outlet expansion of the Company. The Company is said to have an Issuer rating of A – long term and Al – short term rating by the Global Credit Rating Company (GCR).

Speaking on the milestone achieved by the company in raising this initial capital, Group Chief Executive Officer, Mr. Akin Akinfemiwa explained that the bond has been fully underwritten.

This, according to him shows the confidence the investing public has in Forte Oil Plc as an investment of choice.” He said “this bond programme being the first in the downstream sector, is testament to Forte’s position within the downstream sector and allows the company to actualise the vision of the Board to continue to provide value to its shareholders regardless of the economic climate.

On his part, Mr Julius Omodayo-Owotuga, Group Executive Director Finance and Risk, emphasised that this series provides the organisation with the necessary liquidity to actualize its growth strategies and position the Company for the years ahead.

“The pricing of this debt instrument demonstrates the markets’ belief in us and the pricing would help reduce our borrowing cost and increase profitability in the short and long term.”

The company disclosed that the bonds will be listed on the Nigerian Stock Exchange (NSE) and FMDQ OTC Exchange until maturity date in 2021.

The statement also disclosed that United Capital Limited will serve as the lead Financial Advisor/Issuing House to this transaction. It says Boston Advisory Limited, FBN Capital Limited, Planet Capital Limited and Vetiva Capital Management Limited will all serve as joint Financial Advisors/issuing House.