Ardova raises N11.4bn, N13.85bn in twin bonds issuance from debt capital market

Ardova Plc, Nigeria’s indigenous energy firm, said it has successfully completed the issuance of two separate bonds, the N11.44 billion 7-year fixed-rate bond and the N13.85 billion 10-year fixed-rate bond under the company’s N60 billion Series 1 bond issuance programme.

The bonds were issued at 13.3 percent and 13.65 percent, respectively, and duly registered with the Securities and Exchange Commission, Ardova revealed in a regulatory disclosure filed to the Nigerian Exchange Limited.

The company also disclosed that it plans to list the bonds on the FMDQ Securities Exchange Limited, adding that Vetiva Capital Management Limited and Stanbic IBTC Capital Limited acted as joint issuing houses, Banwo & Ighodalo acted as counsel to the transaction, and the trustees were advised by Aluko & Oyebode.

Commenting on the transaction, Olumide Adeosun, chief executive officer of the company said: “We are pleased with the successful conclusion of this transaction which again demonstrates investors’ confidence in the company and provides additional resources for the company to continue its expansion projects.”

In another development, the integrated energy company involved in the distribution of petroleum products including petrol (PMS), diesel (AGO), kerosene (DPK) and liquefied petroleum gas (LPG), announced the conclusion of a share purchase agreement to acquire 100 percent equity stake in Enyo Retail and Supply Limited, a fast-growing technology-driven fuels retailing company in Nigeria with offices in Lagos and five other states with all conditions to the transaction satisfied.

According to the disclosure, the acquisition was completed through a wholly-owned subsidiary of the company, Bags and Kegs Limited.

It also disclosed that the acquisition will lead to a stronger downstream energy group that benefits from the increased customer reach and service delivery and is expected to produce stronger financial results for Ardova.

CEO Adeosun commenting on the successful acquisition, said: “We are pleased with the successful conclusion of this transaction which will provide significant synergies by combining Enyo’s retail outlets and the company’s retail operations. It will also strengthen the quality of earnings for the company. The acquisition is another step towards our broader vision of becoming the leading brand in the downstream petroleum sector.”

The company said the transactions had Stanbic IBTC Capital Limited and Banwo & Ighodalo as advisers to Ardova, while Rand Merchant Bank and Herbert Smith Freehills Paris LLP acted as financial and legal advisers respectively to Enyo.