Seplat Petroleum Development Company, a Nigerian independent oil and gas firm, has issued $650 million in aggregate principal amount of senior notes due in 2026.
It is said to be the largest ever Nigerian oil and gas bond issuance.
A senior note is a type of bond that must be repaid before most other debts in the event that the issuer declares bankruptcy. It is more secure than other bonds.
The dual listed company said the five-year bond was well-received in the market with orders from high quality institutional investors.
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“The notes priced at a yield of 7.75%, representing a significant pricing reduction from its $350 million debut issuance in 2018, which priced at a yield of 9.50% , with a coupon of 9.25%,” a statement by the company read.
“The offering was well oversubscribed with demand from 120 global investors from more than 20 countries resulting in a final overbook in excess of $1.1bn, which was 1.7 times book coverage.”
The global coordinators on the transaction are Citi, J.P. Morgan, Standard Bank and Standard Chartered Bank.
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Natixis, Rand Merchant Bank and Société Générale served as joint bookrunners while FCMB Capital Markets, Nedbank, United Bank for Africa (UBA) and Zenith Bank Plc were co- managers on the transaction.
According to Seplat, the transaction shows confidence by the international market in the Nigerian economy, specifically the oil and gas sector.
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