By Aduragbemi Omiyale
Four financial institutions, including Standard Chartered Bank (StanChart Bank), played a key role in the $650 million five-year bond issued by Seplat, a local energy firm listed on the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE).
StanChart Bank acted as the global coordinator on the note priced at a yield and coupon of 7.75 per cent, a significant improvement over the 9.25 per cent coupon and initial yield of 9.50 per cent of Seplat’s debut corporate bond issued in 2018.
The transaction, regarded as the largest Nigerian oil and gas bond ever priced in international markets, was successfully executed in a challenging market backdrop demonstrating global investors’ confidence in Seplat and the lender’s deep knowledge of the oil and gas industry, access to diverse investor pool and strong relationships with the key stakeholders.
Standard Chartered remains the only bank that has led and served as global coordinators on all high yield Africa-linked oil and gas bond transactions since 2018 underscoring our unparalleled leadership in the space.
“Standard Chartered is proud to partner with Seplat on this landmark transaction which is the largest Nigerian oil and gas bond issuance by a corporate issuer. The success of this issuance, in the current challenging environment, demonstrates investors’ confidence in the Seplat strategy as a leading independent energy supplier.
“We continue to work with our clients across Africa to deliver on their growth aspirations,” the Executive Director in charge of Corporate, Commercial and Institutional Banking, Nigeria & West Africa at Standard Chartered, Mr Olukorede Adenowo, commented.
Adedapo Adesanya