Nigerian independent oil and gas firm, Seplat Petroleum Development Company, has issued a five year, $650-million senior bond with Natixis, Rand Merchant Bank and Société Générale serving as joint lead underwriters.
Coordinated by Citi Bank, JP Morgan, Standard Chartered and Standard Bank, the deal marks the largest oil and gas offering in Nigeria’s history. It will be co-managed by FCMB Capital Markets, Nedbank, United Bank for Africa (UBA) and Zenith Bank Plc.
“The notes are 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%,” said Seplat in a statement. “The offering was well oversubscribed with demand from 120 global investors from more than 20 countries resulting in a final overbook in excess of $1.1 billion, which was 1.7 times book coverage.”
Seplat reported that the bond has gained traction with high-level, institutional investors in the market, adding that the offering demonstrates the trust placed in the Nigerian oil and gas sector by the international investment community.