Paras Energy Funding SPV Plc successfully issues a landmark ₦15 billion 5-year bond, with Rand Merchant Bank Nigeria as Lead Issuing House. This boosts Nig
Rand Merchant Bank acts as Lead Issuing House and Bookrunner on Paras Energy Funding SPV Plc’s Landmark ₦15.00 Billion 5-Year Bond Issuance under the ₦25.00 Billion Bond Issuance Programme Paras Energy and Natural Resources Development Limited through its funding vehicleParas Energy Funding SPV Plc is pleased to announce the successful issuance of the inaugural₦15.00 billion 5-year Fixed Rate Senior Unsecured Bond at a coupon of 18.00% per annum , issued underits ₦25.00 billion Bond Issuance Programme.
Rand Merchant Bank Nigeria Limited acted as Lead Issuing House and Bookrunner on the Transaction. Paras Energy is a privately held energy company operating across the full power value chain, spanning power generation, solar engineering procurement and construction, substations, transmission infrastructure, and operations and maintenance.
The Company is a member of the African Industries Group , a diversified industrial conglomerate with deep roots in the Nigerian economy and over five decades of operations in the country. The Transaction represents the first time a privately held company in the power sector is issuing an unwrapped bond for its firstissuance.
Proceeds of the Bond will be strategically deployed to expand Paras Energy’s generating capacity and accelerate its growth as an independent power plant operator, while deepening its client portfolio across West Africa. The fully subscribed Bond Issue attracted robust demand from a broad and diversified investor base, including Pension Fund Administrators, Asset Managers, and High Net-Worth Individuals.
The success of the bond issuancereflects strong market confidence in Paras Energy’s credit quality, governance framework, and long-term strategic vision despite this being its debut issuance. This Transaction also represents African Industries Group’s inaugural issuance of alonger-dated tenor instrument in the Nigerian debt capital markets, underscoring the Group’s commitment to diversifying its funding sources, strengthening its capital structure, and positioning itself for sustainable, long-term growth.
, Group Chief Financial Officer, African Industries Group, said, “This successful issuance marks a defining moment for Paras Energy and the African Industries Group. As a pioneer private power supplier to the national grid, we are proud to further demonstrate our commitment to Nigeria’s energy security through innovative financing. The strong investor support affirms our strategy, operational track record, and mission to unlock productivity across the West African economy”.
We are delighted to have advised Paras Energy on its successful debut bond issuance, providing end-to-end guidance across structuring, regulatory engagements and distribution resulting in the best possible outcome for the Company. This Transaction demonstrates that well positioned private sector participants in the power value chain can access long-term funding without reliance on guarantees and/orexternal support. RMB Nigeria remains deeply committed to deepening Nigeria’s debt capital markets and partnering with leading corporates to deliver innovative, well-structured, and sustainable financing solutions”.
, Executive Director, RMB Nigeria, Head of Investment Banking Broader Africa, added: “As Lead Issuing House, RMB Nigeriais proud to have partnered with Paras Energy on this landmark transaction. The Company’s ability to achieve full subscription on its first issuance highlights the depth of domestic liquidity and the importance of structuring, transparency, and credit quality in attracting institutional capital.
We expect this to pave the way for increased participation by private issuers in the power sector, supporting greater capital mobilisation and accelerating sectoral growth”. Rand Merchant Bank Nigeria Limited is a leading African Corporate and Investment Bank and a member of the FirstRand Group. RMB Nigeria offers clients innovative, value-added solutions across advisory, funding, trading, corporate banking and principal investing. For more information, please visitAll rights reserved.
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