Oando Plc approves $1.5bn issuance plan

Oando Plc has approved a multi-instrument issuance programme valued at $15bn or its naira equivalent, following the company’s 46th Annual General Meeting held recently.

This capital-raising initiative was officially filed with the Nigerian Exchange Limited by the Chief Compliance Officer and Company Secretary of Oando Plc, Folashade Ibidapo-Obe, on Tuesday.

The issuance programme will enable the company to proceed with the subsequent issuance of bonds, certificates, instruments, and other securities under the programme at such times and on such terms as the Board of Directors may determine, subject to obtaining all relevant regulatory approvals.

This approval forms part of a financial restructuring plan aimed at strengthening Oando Plc’s balance sheet, enhancing liquidity, and supporting its long-term growth strategy in Nigeria’s competitive oil and gas sector.

“The Board is and is hereby authorised to establish a multi-instrument issuance programme in an amount up to $1,5bn or its naira equivalent and to proceed with subsequent issuances of bonds, certificates, instruments and/or other securities under the Programme, at such time and on such terms and conditions to be determined by the directors, subject to obtaining all relevant regulatory approvals subject to terms and conditions to be determined by the Board.”

Alongside the issuance programme, shareholders also authorised the company to raise additional capital of up to N500bn or its foreign currency equivalent through the issuance of up to 10 billion ordinary shares of 50 kobo each. The shares may be issued via public offerings, private placements, debt-to-equity conversions, rights issues, or other approved methods.

“The Company be and is hereby authorised to raise additional capital of up to N500bn or its foreign currency equivalent in the Nigerian and/or international capital markets through the issuance of up to ten billion ordinary shares of 50 kobo each, either as a standalone issue or by the establishment of capital raising programmes, whether by way of public offerings, private placements, debt to equity conversions, rights issues and/or other transaction modes, at price(s) determined through book building or any other acceptable valuation method or combination of methods at such dates, and on such terms and conditions as may be determined by the Board of Directors of the Company (the “Board”) subject to obtaining the requisite regulatory approvals.”

Additionally, the Board was granted authority to convert up to $300m of the company’s existing Reserves-Based Lending debt into equity, a move expected to reduce debt servicing burdens and improve financial resilience.

“The Board is and is hereby authorised to enter into capital restructuring agreements with key stakeholders and lenders and convert up to $300m out of the company’s existing Reserves-Based Lending  debt into equity, subject to terms and conditions to be determined by the directors,” the statement partly reads.

The company further approved amendments to its Memorandum and Articles of Association to reflect the newly issued share capital after the capital raising programmes are completed.

The PUNCH reported that Oando Plc has announced plans to raise up to N500bn in additional capital through a mix of equity and debt instruments, subject to shareholder approval at its upcoming 46th Annual General Meeting.