Stanbic IBTC Capital, Lead Issuing House for Axxela Funding 1 PLC’s ₦16.4b 10-Year Series 1 Fixed Rate Bond

Axxela Funding 1 PLC (“the Issuer”), afunding vehicle incorporated by AxxelaLimited (“Axxela” or the “Company”), sub-Saharan Africa’s leading gas and power portfolio company, has achieved a significant milestone with the successful completion of its ₦16.4 billion Series 1 Fixed Rate Bonds due 2034 (the “Bond Issuance” or the “Transaction”). The Transaction was issued under its newly established ₦50billion Multi-Instrument IssuanceProgramme (the “Programme”). Acting as the Lead Issuing House for the Bond Issue, Stanbic IBTC Capital, the investment banking subsidiary of Stanbic IBTC Holdings, alongside seven Joint Issuing Houses, played a pivotal role in the transaction with Stanbic IBTC Bank and Ecobank PLC serving as the transaction banks.

The bond issuance will enable Axxela Limited to fund its long-term capital expenditure, manage its weighted average cost of capital via a fixed rate instrument and diversify its funding sources whilst meeting the Company’s strategic objectives. It also presents an attractive investment opportunity for the investor community who seek viable investment options and encourages other corporates to explore the domestic fixed-income markets to meet their funding requirements.

Despite launching the Transactionamidst challenging economic conditions,with upward pressure on interest rates and tight market liquidity, the bond issuance was well-received and achieved a 109 percent subscription from a wide range of investors including Pension Fund Administrators (PFAs), Asset Managers and High Networth Individuals (HNIs). This reflects investors’ confidence in Axxela Limited, with the company initially targeting ₦15 billion but ultimately issuing ₦16.4 billion due to strong demand.

Commenting on the bond issuance, Bolaji Osunsanya, Chief Executive Officer, Axxela Limited said, “We extend our heartfelt gratitude to the investor community for their support and continued confidence in Axxela’s long-term vision and strategy. The success of the transaction underscores the trust placed in our management team and our commitment to driving sustainable growth in Nigeria’s energy sector. We are very proud of this transaction and the trust of investors in our business model and growth prospects.”

Timothy Ononiwu, Chief Financial Officer, Axxela Limited said “We are grateful for the success of the Transaction which speaks to the investors’ recognition of Axxela’s operating and financial performance over the years and the significant growth prospects across our value chain. We will continue to explore opportunities to diversify our funding sources and optimize our funding structure towards achieving our financial objectives. We are also thankful for the support of our advisers who guided us through this process and the investors who continue to believe in our story.”

Dele Sotubo, Chief Executive of Stanbic IBTC Capital, highlighted the significance of the transaction in demonstrating the depth, liquidity, and resilience of the Nigerian debt capital market. He added that “Stanbic IBTC Capital is delighted to have played a key role as Lead Issuing House and adviser to Axxela Limited in facilitating this Transaction, At Stanbic IBTC, we are committed to the development of Nigeria’s energy sector and the broader economy. This Transaction aligns with our sustainability agenda and we will continue to support projects that promote the environmental, social, and economic development of Nigeria. We thank Axxela for trusting Stanbic IBTC Capital and the other Joint Issuing Houses in seeing the issuance to successful completion.”

Through its expertise in structuring and executing complex financial transactions, Stanbic IBTC continues to play a crucial role in deepening the potential of Nigeria’s debt capital market, attracting both domestic and international investors, and positioning Nigeria as a choice destination for potential investors.

Axxela, a Helios Investment Partners LLP and Sojitz Corporation company pioneered the development of Nigeria’s foremost private sector natural gas distribution network and has subsequently grown to become the largest private sector gas distributor in Nigeria, delivering natural gas to over 200 industrial and commercial customers via a vast network of gas infrastructure. The Company operates across the natural gas value chain and is involved in natural gas processing, transmission, distribution, power generation and distribution. With over 360km in natural gas pipeline infrastructure developed, Axxela provides innovative energy solutions primarily through its subsidiaries: Gaslink Nigeria Limited, Gas NetworkServices Limited, Central Horizon Gas Company, Transit Gas Nigeria Limited, and a portfolio of new ventures.