By Stanley Onyeka, Lagos
FMDQ Securities Exchange Limited (FMDQ Exchange) has announced the approval and listing of NBET Finance Company PLC (NBET Finance) ₦300.00 Billion 7-Year 17.50% Series 1 Tranche A Fixed Rate Bond, and ₦201.02 Billion 7-Year 17.50% Series 1 Tranche B Fixed Rate Bond.
The Bonds are being floated under its ₦4 trillion Multi-Instrument Issuance Programme on its platform, the Exchange said in a statement.
With an aggregate issuance size of ₦501.02 billion, this landmark transaction ranks among the largest single bond listing on FMDQ Exchange, highlighting the depth and resilience of the Nigerian debt markets.
NBET Finance Company PLC, established by the Nigerian Bulk Electricity Trading PLC (NBET), serves as a dedicated special purpose vehicle for structured capital market financing for Nigeria’s power sector.
As a Federal Government entity operating under the supervision of the Federal Ministry of Power, NBET plays a pivotal role as the primary offtaker in Nigeria’s electricity market, purchasing power from generation companies and selling to distribution companies, thereby anchoring the commercial and financial flows within the Sector.
The proceeds from this Bond issuance, sponsored by CardinalStone Partners Limited, a Registration Member (Listings) of FMDQ Exchange, will address liquidity gaps across the power value chain and support ongoing reforms aimed at achieving a financially sustainable electricity market in Nigeria.
Commenting on the listing, the Acting Managing Director, NBET, Johnson Akinnawo, was quoted as saying: “This Programme was conceived as the first step in a broader series of sector-focused reforms aimed at restoring confidence in Nigeria’s power sector.
“By leveraging the strength of the Nigerian capital markets, we have established a transparent and sustainable framework for addressing legacy obligations within the sector.
“Our objective remains clear: to unlock liquidity, attract private capital, and support the delivery of more reliable electricity to households and businesses across the country.
“With the successful listing of the NBET Finance Company bond on the exchange, we have demonstrated a commitment to leverage depth of the capital markets to develop innovative and sustainable solutions to longstanding sector challenges.”
The proceeds from this Bond issuance will address liquidity gaps across the power value chain and support ongoing reforms aimed at achieving a financially sustainable electricity market in Nigeria.
Market-based solution
Similarly, the Group Managing Director, CardinalStone Partners Limited, Micheal Nzewi, said: “The goal has always been clear: to design a holistic, sustainable, capital market-based solution that addresses the pain points of all stakeholders.
“Today, through the successful listing of this bond on the exchange, we have created an avenue for banks to make markets and for a broader pool of investors to actively trade the instrument, further deepening liquidity within the Nigerian capital market.
“CardinalStone Partners is pleased to have supported the Government in structuring and delivering an innovative financing solution aimed at addressing critical challenges within Nigeria’s power sector and broader economy.”
Also commenting, the Group Chief Operating Officer, FMDQ Group PLC, Ms. Tumi Sekoni, was quoted as saying: “The successful listing of NBET Finance Company PLC’s ₦501.02 Billion Series 1 Fixed Rate Bonds on FMDQ Exchange represents a watershed moment for Nigeria’s debt markets.
“Transactions of this scale underscore the market’s capacity to mobilise long-term financing for critical national infrastructure.
“With Nigeria’s power sector at the heart of the country’s economic growth agenda, this milestone listing reflects the continued confidence of market participants in FMDQ Exchange as the preferred platform for landmark capital market transactions.
“We remain steadfast in our commitment to facilitating access to long-term capital, advancing market transparency, and building robust, globally competitive Nigerian financial markets.”
