CardinalStone Partners’ recent recognition at the African Banker and Euromoney Awards has drawn attention to the investment bank’s growing role in Nigeria’s debt, capital markets and M&A transactions. In this interview, Director and Head, Investment Banking, CardinalStone Partners, Onyebuchim Obiyemi, speaks with ABIGAIL IKHAGHU on the significance of the firm’s recent international awards, the NBET bond transaction, investor confidence in Nigeria’s debt market and the opportunities in M&A and capital markets.

CardinalStone recently won international recognition, including the African Banker Debt Deal of the Year award and Euromoney Awards for Excellence as Nigeria’s Best Investment Bank for M&A as well as Nigeria’s Best for Capital Markets Advisory. What do these recognitions mean for the firm?
First, they are a reflection of our people and the strength of the platform we have built. Awards of this calibre are earned through consistent, high-quality execution across an entire team, and they affirm the talent, commitment and technical expertise that our people bring to every mandate.

Second, they speak to the depth and sophistication of the Nigerian market. They demonstrate that transactions structured and executed in Nigeria can stand confidently alongside some of the best and most innovative transactions across the continent.

Ultimately, these awards reinforce the trust our clients place in CardinalStone and our ability to deliver novel, landmark and technically demanding transactions with rigour, creativity and excellence.

Winning across M&A, capital markets advisory and a landmark debt transaction speaks to the breadth of CardinalStone’s capabilities. What do you believe has driven this consistent performance?
As I mentioned earlier, I believe CardinalStone’s success has been driven, above all, by the quality of the team we have built. A firm is ultimately only as strong as its people, and our consistent performance across different areas of the market is a reflection of the depth, expertise and commitment of our team.

We have a highly qualified and dedicated group of professionals who take real ownership of every mandate and are committed to delivering the highest quality of work, regardless of the size or complexity of the transaction. That commitment is supported by a culture that places a strong emphasis on excellence, collaboration and attention to detail.

We are deliberate about maintaining high standards throughout the execution process, from understanding the client’s objectives to developing the right solution and ultimately delivering the transaction.

I also think our consistency comes from the fact that we approach each mandate with the same level of intensity and professionalism. Whether it is an M&A transaction, a capital markets advisory mandate or a landmark debt transaction, our focus remains on understanding the opportunity, solving the client’s problem and executing effectively.

Over time, that consistency has helped us build credibility and trust with our clients and counterparties. I believe that trust, combined with the strength of our people and our execution capabilities, has been central to CardinalStone’s ability to deliver across such a broad range of transactions.

The NBET Bond Issuance earned international recognition as Debt Deal of the Year. What made the transaction a landmark deal?
What made the transaction a landmark was its significance not just for the capital markets, but also for Nigeria’s power sector and the broader economy. It was one of the largest domestic issuances ever undertaken in the sector and the first tranche of a N4 trillion programme under the Presidential Power Sector Debt Reduction Programme.

The issuance was backed by a Federal Government guarantee and fully subscribed by investors, reflecting strong market confidence. More importantly, its proceeds were intended to clear legacy debt across the electricity value chain, helping to address some of the sector’s longstanding financial challenges.

Ultimately, its landmark status came from the combination of its scale, strong investor participation and, most importantly, its potential to strengthen the financial position of Nigeria’s power sector and support a more sustainable electricity value chain.

CardinalStone served as the Lead Financial Adviser and Lead Issuing House on the transaction. What did that role involve, from structuring through execution?
Our role as Lead Financial Adviser and Lead Issuing House involved supporting the transaction from initial structuring through execution. We began by assessing the sustainability of the proposed debt issuance and the underlying repayment sources, taking into account the prevailing dynamics of the power sector.

Given that the transaction involved a novel structure for the Nigerian market, we played a key role in advising on the optimal structure and working closely with stakeholders to ensure it was well understood and ultimately accepted by the market.

We also supported negotiations with key stakeholders and developed a targeted investor engagement strategy, including roadshows, investor calls and other engagement activities. Throughout the process, we provided transaction and structuring support to maintain alignment among stakeholders and ensure the successful execution of the issuance.

The bond was fully subscribed despite its size. What factors gave investors confidence in the transaction?
The Federal Government guarantee was an important source of investor confidence, as the bond carries the full faith and credit of the Federal Government. Beyond the sovereign backing, the issuance formed part of the Presidential Power Sector Debt Reduction Programme, which provided a clear signal of government commitment to addressing the sector’s longstanding obligations.

The structure and tenor of the bond were also designed with the preferences and appetite of domestic institutional investors in mind, which supported strong participation.

Finally, CardinalStone’s track record played a role. Investors have confidence in our ability to undertake the necessary analysis and due diligence and to execute transactions to a high standard.

The combination of sovereign support, a clear policy objective, an investor-aligned structure and confidence in the transaction team ultimately contributed to the bond being fully subscribed.

Beyond the transaction itself, why is resolving the power sector’s debt challenge so important to Nigeria’s broader economic development?
Power sits underneath virtually every other sector of the economy, so financial challenges in the power sector ultimately become a constraint on broader economic growth. An inefficiently financed power sector increases the cost and uncertainty of electricity supply, which in turn raises the cost of doing business and ultimately impacts consumers.

Resolving the sector’s legacy debt helps restore liquidity across the electricity value chain and gives generation companies greater confidence to invest, particularly with clear government backing. Over time, this can support a more sustainable power sector and reduce some of the cost pressures faced by businesses across the economy.

Ultimately, the real value of resolving the power sector’s debt challenge lies not just in settling outstanding obligations, but in creating the conditions for greater investment, more reliable power and stronger economic growth.

The transaction is one of the largest domestic debt capital markets issuances in Nigeria’s power sector. What precedent does it set for future infrastructure financing and the Nigerian capital market?
I think the transaction sets an important precedent on two fronts. First, from an infrastructure financing perspective, it demonstrates that large-scale financing can be mobilised domestically where there is a credible policy framework, clear government commitment and a well-defined repayment structure.

That provides a potential model for other critical sectors such as healthcare, logistics and manufacturing, where significant funding is required to address infrastructure gaps.

Second, for the Nigerian capital market, the transaction demonstrated the capacity of domestic institutional investors to absorb a large, naira-denominated issuance of this nature. Successfully raising capital at this scale locally is an important signal of the depth and growing sophistication of the market.

Perhaps most importantly, the transaction was structured as a programme rather than a one-off issuance. This creates the potential for the model to be repeated and scaled, providing a framework for mobilising domestic capital towards other strategic infrastructure and development priorities.

In that sense, the transaction is not only significant for what it achieved, but also for what it could enable going forward.

The Euromoney awards recognise excellence in M&A and capital markets advisory. What trends are you seeing in these markets, and where do you expect the biggest opportunities to emerge over the next few years?
Three trends really stand out to me. The first is consolidation across the broader financial services industry. We are seeing this not just in banking, but increasingly across areas such as pensions, asset management and the capital markets.

The various recapitalisation and minimum capital requirements are creating a stronger incentive for institutions to build scale, and I expect this to drive further M&A as smaller players seek strategic partners and larger institutions look to strengthen their market positions. In particular, the increased capital requirements for capital market operators should create additional consolidation opportunities across that segment.

The second is the renewed importance of the domestic debt capital market. External borrowing has become more expensive, while the local market has demonstrated that it can absorb transactions of meaningful scale. As a result, we are seeing more corporates turn to the naira market to meet their funding and refinancing needs. I expect this trend to continue, particularly among companies with significant expansion or refinancing requirements.

The third is the strength of the equity market. With the bullish run we have seen in the stock market, I expect more companies to consider listings and equity offerings as a viable source of capital. A stronger equity market also creates a more attractive environment for foreign investors who have been on the sidelines.

As they begin to re-engage with Nigerian assets, I would expect to see an uptick in M&A activity and strategic investments across domestic opportunities.

In terms of sectors, I see significant opportunities across power, oil and gas and the broader energy sector. The NBET transaction has demonstrated that large-scale, policy-backed financing can be successfully executed in the domestic market, and I believe there is scope to replicate that across other areas of the energy value chain.

At the same time, the investment requirements across oil and gas, power and emerging areas of the broader energy sector will create opportunities for both M&A and capital markets activity.

Overall, I expect the combination of financial services consolidation, increased domestic funding needs, a stronger equity market, renewed foreign investor interest and significant investment requirements across the energy sector to create a very active M&A and capital markets environment over the next few
years.

How important is international recognition like the African Banker and Euromoney Awards in showcasing the strength of Nigerian financial institutions and capital markets to global investors?
It matters significantly. International awards such as the African Banker and Euromoney Awards provide independent validation of the capabilities of Nigerian financial institutions against global standards.
When a Nigerian institution is recognised, the credibility comes not from our own assertion, but from an external assessment of our performance relative to international peers.

For global investors, particularly those less familiar with the Nigerian market, that recognition provides an important level of comfort. It demonstrates that there are institutions and advisers in
Nigeria with the expertise, governance and execution capabilities to operate at international standards.

More importantly, the benefit extends beyond the individual institution. As more Nigerian firms earn credible international recognition, it strengthens the overall perception of Nigeria’s financial sector and capital markets, helping to build greater confidence among international investors.

That said, awards are a point of validation, not the end objective. They may open the door, but sustained performance, institutional credibility and a consistent track record are what ultimately keep that door open.

Looking ahead, how do you plan to build on this momentum and continue delivering value for clients across M&A, capital markets advisory and infrastructure financing?
Looking ahead, our focus is to build on the momentum we have created, with greater ambition, discipline and execution. We see three clear areas of opportunity.

First is infrastructure financing. The NBET bond was only the first tranche of a N4 trillion programme, so there is significant work still ahead. We intend to remain at the forefront of that programme and continue to play a meaningful role in mobilising the long-term capital required to finance critical infrastructure.

Second, M&A. As the economy expands and sectors continue to evolve and consolidate, we expect transactions to become larger, more complex and more strategic. Our ambition is to be the adviser client trust for the most important and challenging transactions, where judgment, structuring expertise and execution really matter.

Third is the capital market. We want to continue demonstrating that Nigerian companies can raise substantial amounts of capital domestically, in naira and at scale. Deepening the local capital markets is important for our clients, but it is also critical to the long-term development of the Nigerian economy.

Underpinning all of this is our people. We will continue to invest in our team, because ultimately, the quality of our people determines the quality of our advice, our execution and the value we deliver to clients.

The awards are an important recognition of what we have achieved over the past few years, and we are proud of them. But they are not the destination. The real measure of success is the next mandate, the next transaction and, most importantly, the value we create for our clients.