Paras Energy and Natural Resources Development Limited, through its funding vehicle, Paras Energy Funding SPV PLC, has announced the successful issuance of the inaugural N15.00 billion 5-year Fixed Rate Senior Unsecured Bond at a coupon of 18.00% per annum (the “Bond Issue” or the “Transaction”), issued under its N25.00 billion Bond Issuance Programme.
Rand Merchant Bank Nigeria Limited (RMB Nigeria) 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, and transmission infrastructure. and operations and maintenance.
As a member of the African Industries Group (AIG), the company is 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 first issuance. 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 issuance reflects 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 a longer-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.
Commenting on the Bond Issuance, Munish Modi. 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.