Ardova to utilise N25.3bn bond for project expansion

Ardova Plc has announced that the N25.3 billion Series 1 fixed rate senior unsecured bond issue under its N60 billion debt issuance programme would be deployed into the company’s project expansion and boosting working capital.

The bond, which was oversubscribed, demonstrated investor confidence in the firm’s niche position as one of the leading indigenous integrated energy companies with a strong management team, business strategy and credit profile.

Chief Executive Officer of the company, Olumide Adeosun, expressed delight at the success of the bond issuance while commending the issuing houses and other professional parties for working tirelessly to ensure its timely and successful completion.

Adeosun added: “We are humbled by the warm reception of our Series 1 (Tranche A and Tranche B) Bonds Issue by Nigeria’s ever-growing institutional investor community. The 7-year and 10-year tranches provide Ardova with the much-needed flexibility to expand and diversify our operations as well as increase our footprint across the country. Our relationship with Nigeria’s debt capital markets commenced in December 2016 with the issuance of the company’s debut bonds.

“This landmark transaction evidences our commitment to nurturing this relationship and adopting the debt capital markets as a fundamental part of our funding strategy on our journey towards being the largest supplier of energy in Nigeria.”

Managing Director/Chief Executive Officer of Vetiva Capital Management Limited, Chuka Eseka, said: “Vetiva is delighted to have provided Ardova with full-scope advisory and issuing house services on the issue. The success of the transaction demonstrates investors’ confidence in the management, vision and purpose of the Ardova team and we thank the board and management of Ardova for allowing Vetiva to lead on this landmark transaction.

We are very proud to be associated with Ardova and look forward to extending our advisory capabilities to the company on its other strategic initiatives.”