CardinalStone Partners Secures N729bn Power Bond for Nigeria

CardinalStone Partners has successfully closed a N728.97 billion Series 2 Power Sector Bond as part of the Federal Government's initiative to address legacy debts and enhance liquidity in Nigeria's electricity value chain. This transaction, where CardinalStone acted as the lead financial adviser and lead issuing house, brings the total for the first phase of the power sector bond programme to N1.23 trillion.

The Series 2 bond consists of a N402 billion tranche from domestic investors and N326.97 billion allocated to participating power generation companies (GenCos). The bond, issued through a special purpose vehicle and fully guaranteed by the Federal Government, has a clearing price of 18 percent and a seven-year maturity.

Proceeds will facilitate settlements to GenCos and their suppliers, alleviating payment pressures in the electricity and gas sectors. Michael Nzewi, group managing director of CardinalStone Partners, stated that the strong investor response reflects market confidence in the transaction's objectives.

Nigerian Bulk Electricity Trading Plc (NBET) sponsored the transaction, involving various stakeholders.