6 April 2021
TEMPLARS has advised Seplat Petroleum Development Company plc, a leading Nigerian independent energy company listed on both the Nigerian Stock Exchange and London Stock Exchange on the offering of an aggregate of US$650 million in guaranteed senior notes to be listed on the London Stock Exchange.
The transaction is significant for being the largest ever oil and gas bond offering by a Nigerian-based issuer on the international capital markets.
The 7.75 percent senior notes due 2026 represent a substantial pricing improvement for the company relative to its 2018 debut issuance of U$350 million 9.25 percent senior notes due 2023.
The proceeds of the new notes will be used to redeem the outstanding notes from 2018, repay US$250 million in bank debt as well as finance general corporate purposes.
The TEMPLARS team that advised on the transaction was led by Partner and Head of the Firm’s Finance Practice Chike Obianwu with support from Associates Nneoma Obijiaku, Ijeamaka Kawekwune, Okabonye Chukwuani and Anwuri Akolokwu.
Templars is recognized as a leader in the market for high yield and Eurobond issuances out of Nigeria, and the Seplat offering is the latest in a series of recent significant debt offerings that the firm has successfully advised on including the Ecobank Nigeria US$300 million notes due 2026 (the first non-sovereign Eurobond issuance from an African issuer in 2021) and the First Bank of Nigeria US$350 million notes due 2025 (the first Eurobond issue from an African Bank in 2020).
According to Chike Obianwu, ‘‘ The success of the Seplat bond offering is testament to the confidence of the international investor community in the management of Seplat and in the Nigerian economy, in spite of all prevailing challenges. We congratulate the Seplat team on the successful outing and we are very pleased to have once again been a part of the company’s success story .’’