…………..largest Nigerian oil & gas offering in history says analysts
Lagos and London – March 25, 2021: Seplat Petroleum Development Company Plc
(“Seplat” or the “Company”), a leading Nigerian independent energy Company listed on
both the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE), has priced
its offering of $650 million in aggregate principal amount of senior notes due 2026 (the
“Notes”).
The Notes 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%.
The size represents, the largest ever Nigerian oil and gas bond issuance.
The offering was well oversubscribed with demand from 120 global investors from more
than 20 countries resulting in a final overbook in excess of $1.1bn, which was 1.7 times
book coverage.
Orders came from high quality institutional investors with long term
commitments to Seplat as well as new institutional investors. The transaction was well
received in the market and traded above par post-pricing.
The transaction shows confidence by the international market in the Nigerian economy and
the oil and gas sector in particular, with a number of the investors committing to the
transaction based on the strong gas story of Seplat.
The Global Coordinators on the transaction are Citi, J.P. Morgan, Standard Bank and
Standard Chartered Bank, with Natixis, Rand Merchant Bank and Société Générale acting
as Joint Bookrunners and FCMB Capital Markets, Nedbank, United Bank for Africa and
Zenith Bank Plc acting as Co-Managers.
