The Nigerian Bulk Electricity Trading (NBET) Finance Company Plc has successfully listed N728.98 billion Series 2 Fixed Rate Bonds on the FMDQ Securities Exchange, with proceeds expected to settle outstanding legacy debts owed to power generation companies (GenCos) and improve liquidity across the electricity value chain. The bonds comprise a N402 billion seven-year Series 2 Tranche A Fixed Rate Bond and a N326.98 billion seven-year Series 2 Tranche B Fixed Rate Bond, issued under the company's N4 trillion Multi-Instrument Issuance Programme.
The listing represents another major capital market intervention aimed at addressing the persistent liquidity challenges confronting Nigeria's power sector, where outstanding payment obligations have continued to constrain the operations of generation companies and other industry participants. According to FMDQ Exchange, the transaction underscores the capacity of Nigeria's debt capital market to mobilise long-term financing for critical infrastructure and support strategic economic sectors.
Commenting on the listing, Akinola Odeyemi, Managing Director of NBET, described the transaction as another significant milestone in efforts to restore liquidity and strengthen the financial sustainability of the power sector. He explained that the proceeds would help settle outstanding legacy debts owed to GenCos, improve liquidity across the electricity value chain and support enhanced operational efficiency and more reliable electricity supply nationwide. Odeyemi noted that the latest issuance builds on the successful listing of the Series 1 bonds, demonstrating the Federal Government's commitment to addressing legacy obligations and advancing reforms in the electricity industry. He added that NBET would sustain the momentum through subsequent phases of the programme to support the long-term development of Nigeria's electricity market.
Michael Nzewi, Group Managing Director of CardinalStone Partners Limited, said the transaction demonstrated the growing capacity of the capital market to mobilise long-term financing for critical infrastructure development. According to him, the successful listing reflected the expertise, disciplined execution and collaboration behind the transaction, while reinforcing the role of capital markets in unlocking funding for strategic sectors.
Tumi Sekoni, Group Chief Operating Officer of FMDQ Group Plc, said the listing demonstrated the ability of the country's debt capital market to facilitate large-scale financing for infrastructure development. She reaffirmed FMDQ Exchange's commitment to providing an efficient marketplace for capital mobilisation, strengthening market confidence and supporting the development of Nigeria's financial markets.
NBET Finance Company Plc was established by Nigerian Bulk Electricity Trading Plc as a special purpose vehicle for structured capital market financing for the power sector. It is a Federal Government entity supervised by the Federal Ministry of Power and serves as the primary off-taker in Nigeria's electricity market, purchasing electricity from generation companies and selling to distribution companies.
The N728.98 billion issuance was approved by FMDQ Exchange's Board Listings and Markets Committee, with CardinalStone Partners Limited acting as the transaction sponsor. The transaction further highlights the role of Nigeria's debt capital market in providing alternative funding channels for infrastructure financing, particularly in the power sector, where liquidity constraints and legacy payment obligations remain major challenges.