Forte Oil Plc, has said it has successfully raised nine billion naira as the first series of its proposed N50 billion bond issuance programme.
According to the foremost integrated energy service provider, the funds raised will be used to refinance existing short term commercial bank loan obligations and to finance the retail outlet expansion of the company.
The company has an Issuer rating of A- long term and A1- short term rating by the Global Credit Rating Company (GCR).
Commenting on the success of the capital raised, Group Chief Executive Officer, Forte Oil, Mr Akin Akinfemiwa said “With the raising of this initial capital which has been fully underwritten shows the confidence the investing public has in Forte Oil Plc as an investment of choice. 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.”
In his remarks, the Group Executive Director, Finance and Risk Forte Oil, Mr Julius Omodayo-Owotuga CFA, stated that “This series provides us with the necessary liquidity to actualize our growth strategies and positions 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 bonds which will be listed on the Nigerian Stock Exchange (NSE) and FMDQ OTC Securities Exchange will mature five years from now, that is, in 2021.
United Capital Plc served as the lead financial advisor/issuing house to the transaction while Boston Advisory Limited, FBN Capital Limited, Planet Capital Limited and Vetiva Capital Management Limited served as joint financial advisors/issuing houses.
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