FMDQ lists N10bn pioneer power bond as Viathan taps debt capital market for funding

The FMDQ OTC Securities Exchange has listed a N10 billion power bond by Viathan Funding Plc. in what appears to the first of its kind to prosecute funding of power infrastructure projects in the country.

The bond is the first tranche of the company’s N50 billion Senior Guaranteed Fixed Rate bond from the Nigerian debt capital markets due by 2027 at 16 per cent.

The bond, the first corporate facility to be successfully accessed from the Nigerian debt market for infrastructure development, has 10 years tenure, extending the yield curve for corporate debt issuances.

Speaking at the bond listing in Lagos, Ladi Sanni, the chief executive officer, Viathan Funding Plc., said the bond was oversubscribed by 105 per cent.

Sanni said 16 institutional investors, comprising 12 pension funds and two insurance companies subscribed to the bond.

Viathan Funding Plc is a special purpose vehicle established to raise debt capital with Renaissance Capital (Nigeria) as the lead issuing house and lead book runner for the transaction.

He said the subscription level indicated investors’ confidence in the company, saying the company would deliver on its promises to various stakeholders and the net proceeds of the bonds would be utilised by Viathan Group to expand its electricity generation capacity.

“The ₦10 billion bond is the first tranche in a ₦50 billion bond programme which would essentially help Viathan to actualise its aggressive 200 Megawatts capacity expansion programme by 2021,” Sani noted.

“We are happy about the investors’ confidence and reception to the Viathan bond and look forward to their support in subsequent bond issues”.

According to him, the bond listing will increase the country’s investment portfolio and boost foreign direct investment as they would continue to demonstrate corporate governance in all dealings to make the bond a success.

Bola Onadele, FMDQ managing director, described the event as a “special occasion for the company and in the history of the country as infrastructure poses a major challenge to the realisation of the potential of the Nigerian economy; one which has not only stagnated economic development, but inhibited improvement in the standard of living of the Nigerian people.’’

Onadele said the role FMDQ intends to play in the capital market ecosystem was to become an agent of change in the market and advocate for the government.

“We strive to unlock capital in infrastructure spaces in power, housing, transportation because these are the commanding agents of change in the economy,’’ he said.

Tumi Sekoni, Vice President, Capital Markets Directorate at FMDQ, whilst welcoming the guests and market participants gathered to commemorate the commendable feat, congratulated the issuer and guest of honour, Viathan Funding PLC; expressing FMDQ’s pleasure at the pioneer listing of a power bond in Nigeria, a most exemplary and indeed, positive step towards improving infrastructure development in the nation.

Yusuf Tajudeen, the chairman, House of Representatives committee on capital market and institutions, at the event said the National Assembly would continue to support the growth of capital market as the country would achieve the needed growth with a vibrant and enhanced capital market.

He commended FMDQ for its efforts in revolutionalising the debt market and provision of platform for companies and institutions to raise funds for growth and development.

Viathan Group develops and operates off-grid power solutions in Nigeria.