Stock Exchange Lists Forte Oil’s ₦9B Bond

Photo L-R: Haruna Jalo-Waziri, Executive Director, Capital Markets, The Nigerian Stock Exchange (NSE); Julius Omodayo-Owotuga, Group Chief Financial Officer, Forte Oil Plc;  Oscar Onyema, Chief Executive Officer, NSE; Akin Akinfemiwa, Group Chief Executive Officer, Forte Oil Plc; and Oluwatoyin Sanni, Group Chief Executive Officer, United Capital Plc at the listing of Forte Oil Plc N9 Billion Series 1:5 year fixed rate unsecured bond at the NSE on Tuesday.

The Nigerian Stock Exchange has listed a firmly underwritten N9billion bond for Forte Oil as part of the planned N50 billion bond issuance programme for the energy company.

The proceeds of the N9 Billion Series 1, Five Year bond will be deployed to refinance existing short term commercial bank loan obligations and to expand downstream retail outlet footprints amongst others.

The Group Managing Director Mr. Akin Akinfemiwa said, “This bond programme, being the first in the downstream sector, is a testament to Forte Oil’s leading position within the downstream sector.”

United Capital Limited served as the lead Financial Advisor/Issuing House to the transaction, while Boston Advisory Ltd., FBN Capital Ltd., Planet Capital and Vetiva Capital Management were joint Financial Advisors/issuing House.

Speaking on the listing, Haruna Jalo-Waziri, NSE’s Executive Director, Capital Market Division, said, “We are pleased to be a partner to Forte Oil in its quest to expand its franchise by raising fresh capital through bonds. As the pioneer Exchange, we will continue to provide our issuers with bespoke financing options that will place them in vantage position to compete regionally and globally.”

The year seems to have started on a busy note for the Exchange with spate of listings on the bourse. So far, two companies, Medview Airline and Jaiz Bank were listed by introduction, Stanbic IBTC Asset Management Limited listed Pension ETF 40, while Top Services Limited listed a REITs.

Mixed Sector Performance
In the mean time, the Nigerian equities market closed flat as the All Share Index rose 1bp to settle at 25, 251.63 points on Tuesday, while YTD loss of the index was unchanged at -6.0%. The major drivers of the positive performance today were NIGERIAN BREWERIES (+4.3%), FBNH (+3.2%) and ACCESS (+2.5%) as market capitalisation rose N741.4m to N8.7tn. Activity level strengthened as volume and value traded rose 21.1% and 180.6% to 131.2m units and N2.8bn respectively.

Performance across sectors was mixed as 2 sector indices advanced while 3 declined. The Consumer Goods index appreciated the most, up 1.5% as a rally in NIGERIAN BREWERIES (+4.3%) buoyed the index. Similarly, the Insurance index advanced 0.5% following gains in CUSTODIAN (+4.9%) and CONTINSURE (+3.8%). On the other hand, the Industrial Goods index declined the most, losing 2.1% on the back of price depreciation in WAPCO (-5.0%). Similarly, the Oil & Gas index lost 1.5% as FORTE (-5.4%) and SEPLAT (-2.6%) declined. In the same vein, the Banking index slid 0.6%.

Despite the marginal uptrend in the benchmark index, investor sentiment softened as market breadth weakened from 0.6x yesterday to 0.4x - 11 stocks advanced while 21 declined. The top gainers were CUSTODIAN (+4.9%), NIGERIAN BREWERIES (+4.3%) and CONTINSURE (+3.8%) while FORTE (-5.4%), DANGFLOUR (-5.1%) and UNILEVER (-5.0%) declined the most. As reflected in today’s performance, investors’ appetite for equities remains weak. Hence, we expect a bearish performance in the trading session ahead barring the release of any positive earnings result(s).