Pivot Integrated Energy Services Limited has completed its first commercial paper issuance, raising N100.08 billion after its N100 billion Series 1 offer under a N300 billion Commercial Paper Programme was oversubscribed by investors.
The transaction marks Pivot’s entry into Nigeria’s debt capital market and provides the company with additional funding for its downstream energy operations.
The proceeds will support the company’s activities in the trading, storage, distribution and supply of refined petroleum products across Nigeria and selected African markets.
The response from institutional and sophisticated investors also points to demand for opportunities in Nigeria’s energy sector, particularly as companies seek funding to expand their operations.
Babajide Babatope, Managing Director of Pivot Integrated Energy Services, said the transaction marked a new stage in the company’s development.
‘Today marks a defining chapter in Pivot’s growth story. Entering Nigeria’s debt capital market for the first time and achieving an oversubscription is an extraordinary milestone for the Company. It validates the strength of the platform we have built, the confidence investors have in our business and the opportunities ahead of us.’
He said the funds would help Pivot execute its growth plans and expand its operations.
‘We are proud and humbled by the confidence demonstrated by our investors. This successful issuance provides us with additional funding capacity to execute our growth strategy, strengthen our operations and scale our business across Nigeria and selected African markets. We remain firmly focused on building a leading, resilient and sustainable downstream energy business.’
Pathway Advisors Limited served as the Transaction Sponsor, Financial Adviser, Lead Issuing House and Lead Arranger for the issuance.
The advisory firm said the transaction demonstrated investor confidence in Pivot’s business model, management team and financial position.
Adekunle Alade, Founder and Chief Executive Officer of Pathway Advisors, said the outcome showed the level of confidence investors had placed in the company.
‘Debut issuances are always the ultimate test of market confidence. Pivot passed that test emphatically. The level of demand recorded for this maiden N100 billion Commercial Paper issuance is a powerful endorsement of the Company’s fundamentals, its management team and the strength of the investment proposition presented to the market.’
Alade said Pathway Advisors would continue to support Pivot as it accesses the remaining capacity under its N300 billion Commercial Paper Programme.
‘This is a landmark achievement for Pivot and a significant milestone for Nigeria’s commercial paper market. We are particularly proud to have played a central role in bringing Pivot successfully into the debt capital market, and we look forward to supporting the Company through the subsequent phases of its N300 billion Commercial Paper Programme.’
The transaction involved a group of financial institutions across the Nigerian capital market.
The Joint Arrangers were Coronation Merchant Bank, Quantum Zenith Capital and Investments Limited, FCMB Capital Markets Limited, AIICO Capital Limited, FSDH Capital Limited, FSL Capital Limited, Greenwich Capital Markets Limited, United Capital Limited, Mainstreet Capital Limited, Rand Merchant Bank and First Ally Advisory Limited.
ProvidusUnity Bank and Fidelity Bank Plc acted as Collecting and Paying Agents, while Globus Bank Limited and Polaris Bank Limited also participated in the transaction. Alliance Law Firm served as Solicitor.
The issuance forms part of Pivot’s plans to increase its funding capacity as it continues to operate across the downstream energy value chain.
For Pivot, the N100.08 billion subscription provides a route to further capital-market funding under its N300 billion programme. For investors, the transaction marks another example of institutional capital being deployed to support businesses operating in Nigeria’s energy market.
Pathway Advisors said the investors included Pension Fund Administrators, insurance companies, commercial and merchant banks, asset management companies, investment funds and corporate treasuries.
‘Their strong response represents more than successful subscription; it is a powerful endorsement of Pivot’s business model, management capabilities, growth strategy and credit fundamentals,’ Alade said.