Oando Plc says it plans to raise N500 billion in fresh capital as part of a broad restructuring and financing programme aimed at strengthening its balance sheet and supporting its growth plans.
The company announced in a notice signed by Ayotola Jagun, company secretary, and filed on the Nigerian Exchange Limited (NGX) on Monday, ahead of its 46th virtual annual general meeting (AGM) to be held on August 11.
According to the notice, the oil and gas company intends to issue up to 10 billion new ordinary shares of 50 kobo each through public offerings, private placements, rights issues, or debt-to-equity conversions.
“The Company be and is hereby authorised to raise additional capital of up to N500,000,000,000.00 (Five Hundred billion Naira only) or its foreign currency equivalent in the Nigerian and/or international capital markets through the issuance of up to 10,000,000,000 (Ten Billion) ordinary shares of 50 kobo each, either as a standalone issue or by the establishment of capital raising programmes, whether by way of public offerings, private placements, debt to equity conversions, rights issues and/or other transaction modes, at price(s) determined through book building or any other acceptable valuation method or combination of methods at such dates, and on such terms and conditions as may be determined by the Board of Directors of the Company (the “Board”) subject to obtaining the requisite regulatory approvals,” the notice reads.
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“The Board be and is hereby authorised to enter into capital restructuring agreements with key stakeholders and Lenders and convert up to US$ 300,000,000.00 (Three Hundred Million US Dollars only) out of the Company’s existing Reserves-Based Lending (RBL) debt into equity, subject to terms and conditions to be determined by the Directors.”
‘OANDO TO ESTABLISH $1.5BN EQUITY ISSUANCE PROGRAMME’
In addition, Oando also seeks board approval to establish a multi-instrument issuance programme of up to $1.5 billion.
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Oando said the programme would allow the company to issue bonds, certificates, or other financial instruments to diversify its funding sources with terms and conditions to be determined by the directors subject to obtaining all relevant regulatory approvals.
The company also plans to absorb surplus proceeds from any oversubscription that may result from the capital raise, subject to regulatory guidelines.
“The Board be and is hereby authorized to enter into any agreements and/or execute any documents, appoint such professional parties, perform all such other acts and do all such other things as may be necessary for or incidental to effecting the above resolutions, subject to obtaining the approvals of relevant regulatory authorities, including without limitation, complying with the directives of any regulatory authority,” the company added.
In August 2024, Oando completed the acquisition of a 100 percent shareholding interest in the Nigerian Agip Oil Company (NAOC) from Eni, an Italian oil major.
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