By Modupe Gbadeyanka
Forte Oil Plc has successfully closed its N9 billion Series 1 debt issue, the company has disclosed in a statement signed by its Head of Investor Relations, Mr Doyin Ogun.
Forte Oil explained that this is the first series of its proposed N50 billion bond issuance programme it announced few months ago.
It said the funds raised would 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 A 1- short term rating by the Global Credit Rating Company (GCR).
Speaking at the Board Completion meeting, the Group Chief Executive Officer, Mr Akin Akinfemiwa, noted that, “With the raising of this initial capital which has been fully underwritten shows the confidence the investing public has in Forte Oil Pic 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.”
Also, the Group Executive Director Finance and Risk, Mr Julius Omodayo-Owotuga, 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 will be listed on the Nigerian Stock Exchange (NSE) and FMDQ OTC Exchange until maturity date in 2021.
United Capital Limited served as the lead Financial Advisor/Issuing House to this transaction while Boston Advisory Limited, FBN Capital Limited, Planet Capital Limited and Vetiva Capital Management Limited served as joint Financial Advisors/issuing House.
Forte Oil is a a foremost integrated energy service provider in Nigeria.
