• Sunday, May 19, 2024
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Axxela raises N16bn for gas pipeline projects

Axxela raises N16bn for gas pipeline projects

Axxela Limited, a sub-Saharan African gas and power company, has announced the completion of its N15bn Series 1 Bond Issuance, raising an additional N1.4bn in oversubscription.

Axxela’s Chief Executive Officer, Bolaji Osunsanya, said the bond, issued under the company’s newly established N50bn Multi-Instrument Issuance Programme, achieved an oversubscription of 109 per cent to close at N16.4bn.

According to Osunsanya, Axxela accomplished this financial milestone despite issuing the bond during challenging economic conditions with rising interest rates and limited market liquidity.

The offer, he said, attracted strong investor interest from a diverse investment group, including pension fund administrators, asset managers, and high-net-worth individuals, underscoring robust confidence in its financial prospects and market position.

“The bond issuance will enable Axxela to fund its long-term capital expenditures, manage its weighted average cost of capital, and diversify its funding sources while meeting the company’s strategic objectives,” he disclosed.

He mentioned that, among other things, the fund would help finish ongoing gas pipeline projects throughout Nigeria.

He emphasised that with natural gas taking centre stage in the Federal Government’s energy transition agenda, Axxela was positioned as the partner of choice to actualise large-scale projects within the pipeline, including the virtual pipeline, gas processing, last-mile distribution and embedded power solutions.