Ardova Plc has announced the successful issuance of a tranche A and tranche B Series I bond worth up to N25.3 billion cumulatively. The issuance is part of the company’s newly established N60 billion bond issuance programme.

This is according to a statement signed by the Company Secretary, Oladeinde Nelson-Cole, and filed with the Nigerian Exchange Limited (NGX).

The breakdown of the deal showed that the leading indigenous energy firm successfully raised about N11.4 billion from the tranche A offer and an additional N13.9 billion from the tranche B offer. The tranche A and B come with a maturity period of 7 and 10 years respectively.  In addition, the Series I bonds have fixed rates of 13.3% and 13.65% respectively

According to the notice, the bonds are duly registered with the Securities and Exchange Commission. The firm stated that it will be applying to list the bonds on the FMDQ Securities Exchange Limited.

Vetiva Capital Management Limited and Stanbic IBTC Capital Limited acted as Joint Issuing Houses, whilst Banwo & Ighodalo acted as Transaction Counsel. The trustees were advised by Aluko & Oyebode.

Commenting on the recent development, the CEO of Ardova Plc, Mr. Olumide Adeosun 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.’’

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Nairametrics had earlier reported plans by Ardova Plc to issue Series I bonds worth up to N22 billion. The decision was sequel to the recommendations of the Board during its last AGM, where it was unanimously agreed for the company to raise additional capital of N60 billion.

The stance was maintained during a subsequent virtual board meeting of the company held on the 29th of April, 2021, as board members resolved to establish a debt issuance programme.