CardinalStone Leads N501bn Power Sector Bond Issuance

CardinalStone Partners Limited was the lead financial adviser and Lead Issuing House on the successful completion of a N501.021 billion bond issuance under the N4 trillion Power Sector Multi-Instrument Issuance Programme.
The issuance was executed under the Presidential Power Sector Debt Reduction Programme.
The N501.021 billion bond represents the inaugural tranche of the N4 trillion programme. It has a seven-year tenor.

The tranche comprised a N300 billion offering placed with institutional and individual investors.
It also included a N201 billion bond allocation to eligible Power Generation Companies. The GenCos had executed settlement agreements under the programme. The bond was fully subscribed.
The programme that is championed by President Bola Ahmed Tinubu, is intended to address long-standing payment arrears owed to GenCos, which for over a decade have historically constrained liquidity, weakened balance sheets, and discouraged investment across the power sector value chain.
The issuance formed part of broader reforms aimed at restoring financial sustainability and strengthening confidence in Nigeria’s power sector.

The authorities have repeated that the plan is to clear long-standing payment arrears owed to GenCos clear the liquidity constraints in the power sector.
The bond was guaranteed by the full faith and credit of the Federal Government of Nigeria.
It is sponsored by the Nigerian Bulk Electricity Trading Plc.
The transaction was executed under the leadership of the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

The transaction marked a milestone in Nigeria’s domestic debt capital market.
It also reflects sustained investor appetite for credit-enhanced public sector instruments.
CardinalStone provided advisory services on transaction structuring and regulatory coordination. The firm also handled stakeholder engagement and execution leadership.

Commenting on the issues, the company said the transaction highlights its experience in managing complex capital market deals. CardinalStone commended key public sector stakeholders for their roles in the transaction.
It expressed appreciation to the Special Adviser to the President on Energy, Olu Verheijen, and her team.
The firm also acknowledged the management of Nigerian Bulk Electricity Trading Plc led by Johnson Akinnawo.
It thanked the Debt Management Office led by Patience Oniha.

CardinalStone also appreciated other government institutions and professional advisers involved in the issuance.
It thanked members of the investing public for their confidence.
Commenting on the transaction, the group managing director of CardinalStone, Michael Nzewi, said the successful issuance reflects sustained investor confidence in Nigeria’s capital market.
He said the firm was pleased to support government efforts to strengthen the financial foundations of the power sector.

Nzewi added that the transaction advances broader economic reforms. He described the issuance as a meaningful step in the federal government’s reform agenda.
He said it would help unlock investment and improve long-term sector viability.
CardinalStone said it remains committed to deepening Nigeria’s capital markets.
The firm said it will continue to support sustainable economic growth through strategic advisory services.
CardinalStone is an independent multi-asset investment banking group in Nigeria.

It provides advisory, capital markets, asset management, securities trading, trust, financing, registrar and pension services.
The firm has advised on over N5 trillion in capital markets and mergers and acquisitions transactions.
It was the first brokerage to surpass N2 trillion in transaction value on the Nigerian Exchange.