NBET Lists N501.02bn Electricity Debt Bonds On FMDQ Exchange

FMDQ Securities Exchange Limited has announced the approval and listing of NBET Finance Company Plc’s N501.02 billion fixed-rate bonds on its platform.

The bonds comprise N300.00 billion of the 7-year 17.50 per cent series 1 tranche A fixed rate bond and N201.02 billion of the 7-year 17.50 per cent series 1 tranche B fixed rate bond under the Company’s N4.00 trillion multi-instrument issuance programme.

With an aggregate issuance size of N501.02 billion, this landmark transaction ranks among the largest single bond listings on the FMDQ Exchange, highlighting the depth and resilience of Nigeria’s debt markets.

FMDQ in a release said, the proceeds from this bond issuance, sponsored by CardinalStone Partners Limited, will address liquidity gaps across the power value chain and support ongoing reforms aimed at achieving a financially sustainable electricity market in Nigeria.

Speaking on the listing, the acting managing director, NBET, Johnson Akinnawo, stated, “This programme was conceived as the first step in a series of sector-focused reforms aimed at restoring confidence in Nigeria’s power sector.

“By leveraging the strength of the Nigerian capital markets, we have established a transparent and sustainable framework for addressing legacy obligations within the sector. Our objective remains clear: to unlock liquidity, attract private capital, and support the delivery of more reliable electricity to households and businesses across the country.”

He added that with the successful listing of the NBET Finance Company bond on the exchange, we have demonstrated a commitment to leveraging the depth of the capital markets to develop innovative and sustainable solutions to longstanding sector challenges.

The group managing director, CardinalStone Partners Limited, Michael Nzewi, stated that the goal has always been clear: to design a holistic, sustainable, capital market-based solution that addresses the pain points of all stakeholders.

According to him, today, through the successful listing of this bond on the exchange, we have created an avenue for banks to make markets and for a broader pool of investors to actively trade the instrument, further deepening liquidity within the Nigerian capital market.

“CardinalStone Partners is pleased to have supported the Government in structuring and delivering an innovative financing solution aimed at addressing critical challenges within Nigeria’s power sector and broader economy.”

The Group chief operating officer of FMDQ Group, Ms. Tumi Sekoni stated, “the successful listing of NBET Finance Company’s N501.02 billion Series 1 Fixed Rate Bonds on FMDQ Exchange represents a watershed moment for Nigeria’s debt markets.

“Transactions of this scale underscore the market’s capacity to mobilise long-term financing for critical national infrastructure. With Nigeria’s power sector at the heart of the country’s economic growth agenda, this milestone listing reflects the continued confidence of market participants in FMDQ Exchange as the preferred platform for landmark capital market transactions.”

NBET Finance Company, established by the Nigerian Bulk Electricity Trading (NBET), serves as a dedicated special purpose vehicle for structured capital market financing for Nigeria’s power sector. As a federal government entity operating under the supervision of the Federal Ministry of Power, NBET plays a pivotal role as the primary off-taker in Nigeria’s electricity market, purchasing power from generation companies and selling to distribution companies, thereby anchoring the commercial and financial flows within the Sector.