Oando Seeks N500bn Capital Raise, Converts $300m Debt To Equity

Oando Plc has revealed plans to raise additional capital of N500 billion and to convert $300 million in debt to equity amidst an expansion drive.

This was contained in the Company Notice of Annual General Meeting released on the Nigerian Exchange.

At the annual meeting scheduled for August 11, 2025, the energy company said it would be seeking shareholders authorisation to raise the amount or its foreign currency equivalent in the Nigerian and/or international capital markets.

Oando stated that “this capital raising will be either by 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 subject to obtaining the requisite regulatory approvals.”

It also noted that the Board would  be seeking shareholders’ approval to enter into capital restructuring agreements with key stakeholders and lenders and convert up to $300 million out of the company’s existing reserves-based lending (RBL) debt into equity, subject to terms and conditions to be determined by the directors.

“Oando plans to obtain approval from shareholders to establish a multi-instrument issuance programme in an amount up to $1.5 billion or its naira equivalent and to proceed with subsequent issuances of bonds, certificates, instruments, and/or other securities under the programme,” the notice said.

Details obtained from its regulatory filing revealed that Oando will also be seeking shareholders’ approval to issue up to 10 billion ordinary shares of 50 kobo each, either as a standalone issue or by the establishment of capital raising programmes.

The company currently has 12.43 billion shares outstanding, each valued at N50.50 as of July 18.

The company’s audited consolidated and separate financial statements for the year ended December 31, 2024, showed that it almost doubled its revenue to N4.086 trillion from N2.845 trillion in 2023. The group profit more than doubled to N224.856 billion from N61.996 billion in 2023.