Energy Firm Raises N15bn As Pension Funds Deepen Power Sector Exposure

Nigeria’s pension and asset management industry is expanding its footprint in privately originated power infrastructure, as institutional investors have fully subscribed to Paras Energy Funding SPV Plc’s N15 billion 5-year bond.

The issuance, carried out under a N25 billion programme, was priced at a fixed coupon of 18 per cent per annum and represents the company’s inaugural debt market transaction through its funding vehicle. Rand Merchant Bank Nigeria Limited served as Lead Issuing House and Bookrunner.

Paras Energy and Natural Resources Development Limited operates across the electricity value chain, including power generation, solar engineering, procurement, and construction, substations, transmission infrastructure, and operations and maintenance services.

Proceeds from the bond will be deployed to expand generation capacity and scale operations, in line with the company’s broader strategy to strengthen its position as an independent power producer serving both domestic and regional energy markets.

Group Chief Financial Officer of African Industries Group, Munish Modi, said the strong investor participation reflects confidence in the company’s operational performance and its long-term role in advancing Nigeria’s energy security through innovative financing structures.

He added that the transaction marks a key milestone in diversifying the group’s funding sources and supporting its long-term expansion plans.

On the arranging side, Rand Merchant Bank Nigeria Limited noted that the successful full subscription underscores the growing depth of domestic liquidity and increased institutional willingness to support well-structured private-sector issuers beyond traditional sovereign-linked instruments.

Head of Debt Capital Markets Nigeria at RMB Nigeria, Laju Atake, said disciplined structuring and sustained investor engagement were critical to achieving full subscription, adding that the deal highlights the increasing sophistication of Nigeria’s capital markets in pricing and absorbing infrastructure-related credit.