CardinalStone Partners Limited has acted as Lead Financial Adviser and Lead Issuing House on the N501.021 billion bond issued under the Federal Government’s Presidential Power Sector Debt Reduction Programme (PPSDRP), marking the first tranche of the N4 trillion Power Sector Multi-Instrument Issuance Programme.
The seven-year bond comprised a N300 billion offering subscribed by institutional and individual investors, alongside a N201 billion allocation issued to eligible power generation companies (GenCos) that have executed settlement agreements under the programme. The offering was fully subscribed.
The programme, championed by President Bola Ahmed Tinubu, is designed to clear long-standing payment arrears owed to GenCos. The arrears, which have persisted for more than a decade, have constrained liquidity, weakened balance sheets and slowed investment across the power sector value chain.
The bond is guaranteed by the full faith and credit of the Federal Government of Nigeria and sponsored by the Nigerian Bulk Electricity Trading Plc (NBET). According to the firm, the transaction signals continued investor appetite for credit-backed public sector instruments within the domestic debt capital market.
CardinalStone said it provided advisory services covering transaction structuring, regulatory coordination, stakeholder engagement and execution of the issuance.
Commenting on the deal, the Group Managing Director of CardinalStone, Michael Nzewi, said the strong subscription reflected investor confidence in structured public sector credits.
Nzewi said, “The successful completion of the N501 billion Power Sector bond issuance reflects sustained investor confidence in well-structured public-sector credits and in Nigeria’s domestic capital markets.
CardinalStone is pleased to have advised on this transaction, supporting the Government’s efforts to strengthen the financial foundations of the power sector and advance broader economic reforms.”
The firm expressed appreciation to the Special Adviser to the President on Energy, Olu Verheijen and her team; the management of NBET led by Johnson Akinnawo; and the Debt Management Office (DMO) led by Patience Oniha, for their roles in structuring and executing the transaction under the leadership of the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
CardinalStone described the issuance as a step in the Federal Government’s reform efforts aimed at restoring financial stability in the power sector and strengthening investor confidence.
