Axxela Limited Successfully Completes ₦15 Billion Bond Issuance Amid Economic Challenges


Axxela Limited, a prominent sub-Saharan African gas and power company, has achieved a significant financial milestone by completing its ₦15 billion Series 1 Bond Issuance, despite prevailing harsh economic conditions in the country.

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The Bond, issued under Axxela’s newly established ₦50 Billion Multi-Instrument Issuance Programme, garnered strong investor interest and achieved an oversubscription at 109 percent, closing at ₦16.4 Billion. This accomplishment is noteworthy given the challenging economic backdrop characterized by rising interest rates and limited market liquidity.

The bond issuance attracted diverse investors, including Pension Fund Administrators, Asset Managers, and High-Net-Worth Individuals, showcasing robust confidence in Axxela’s financial outlook and market position.

Proceeds from the bond issuance will enable Axxela to fund long-term capital expenditures, manage its weighted average cost of capital, and diversify its funding sources to align with strategic objectives. Stanbic IBTC Capital, supported by seven Joint Issuing Houses with Stanbic IBTC Bank as the transaction bank, played a pivotal role in facilitating the successful transaction.

Bolaji Osunsanya, Chief Executive Officer of Axxela Limited, expressed gratitude to Nigerian capital market investors for their continued confidence in Axxela’s brand, financial performance, and strategic vision. He highlighted the significance of this oversubscribed issuance as an indicator of increasing investor confidence in the company.

Osunsanya emphasized the crucial partnership between private entities and debt capital markets, enabling Axxela to pursue its growth strategy focused on optimizing operations, expanding its footprint, and revolutionizing the energy sector.

Timothy Ononiwu, Chief Financial Officer of Axxela Limited, also expressed appreciation for the successful transaction, citing investor recognition of Axxela’s operating and financial performance and growth prospects across its value chain.

Axxela, with a legacy spanning over twenty years, is a pioneer in Nigeria’s natural gas distribution network and has evolved into the largest private-sector gas distribution company in Nigeria. The company’s operations encompass the entire natural gas value chain, including processing, transmission, distribution, trading, power generation, and distribution.

The successful completion of this bond issuance underscores Axxela’s commitment to sustainable growth and development within Nigeria’s energy landscape amid evolving global energy trends and the country’s energy transition agenda.

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Godwin Okafor
Godwin Okafor
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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