Pivot Opens N100bn Commercial Paper to Fund Downstream Operations

Pivot Integrated Energy Services Limited has opened subscriptions for its Series 1 Commercial Paper (CP) issuance of up to N100 billion under its N300 billion Commercial Paper Programme, as the indigenous downstream energy company seeks to raise short-term funding to strengthen its working capital and support business expansion.

The issuance, arranged by Pathway Advisors Limited as Lead Arranger and Issuing House, opened for subscription and is scheduled to close on July 31, 2026.

According to the transaction details, the Series 1 issuance comprises three tranches with varying tenors. Tranche A has a tenor of 180 days with a discount rate of 17.5 per cent and a yield of 19.15 per cent. Tranche B has a 270-day tenor, offering a 19.5 per cent discount rate and a yield of 22.79 per cent, while Tranche C has a tenor of 364 days with a discount rate of 19.69 per cent and a yield of 24.50 per cent.

The minimum subscription is N5 million, equivalent to 5,000 units at N1,000 per unit, with additional investments accepted in multiples of N1,000.

The company said proceeds from the issuance will be deployed to finance working capital, supporting its operations in the importation, trading, storage, distribution and supply of refined petroleum products across Nigeria and selected African markets.

The offer is expected to provide investors with an opportunity to participate in the growth of the downstream energy company, which said it has recorded sustained revenue growth, established robust off-take arrangements and continued improvements in profitability.

Pivot, an indigenous integrated downstream energy company, supplies Premium Motor Spirit (PMS), Automotive Gas Oil (AGO) and Aviation Turbine Kerosene (ATK) to a broad customer base that includes bulk buyers, distributors, industrial users, logistics operators, manufacturers and retail-linked channels across major commercial centres such as Lagos, Calabar and Port Harcourt.

The company is also among the 20 approved off-takers under the Dangote Refinery Premium Motor Spirit Consortium, with an allocated target volume of 300 million litres per quarter.

On the credit quality of the issuance, the Series 1 Commercial Paper received short-term ratings of A3 from Agusto & Co., A3 from Global Credit Rating and A1 from DataPro Limited, reflecting the company’s credit standing in the domestic debt market.

The N100 billion Series 1 issuance forms the first drawdown under Pivot’s N300 billion Commercial Paper Programme, underscoring growing activity in Nigeria’s debt capital market as corporates continue to leverage commercial paper issuances to meet short-term funding requirements amid evolving market conditions.