Paras Energy and Natural Resources Development Limited, through its funding vehicle Paras Energy Funding SPV Plc, has successfully completed a ₦15 billion 5-year Fixed Rate Senior Unsecured Bond issuance at a coupon rate of 18.00 per cent per annum.
The bond was issued under the company’s ₦25 billion Bond Issuance Programme, with Rand Merchant Bank Nigeria Limited (RMB Nigeria) serving as Lead Issuing House and Bookrunner.
Paras Energy is a privately held energy company operating across the full power value chain, including power generation, solar engineering, procurement and construction, substations, transmission infrastructure, and operations and maintenance services. The company is a subsidiary of the African Industries Group, a diversified conglomerate with more than five decades of operations in Nigeria.
The transaction is being described as a milestone in Nigeria’s capital market, as it marks the first time a privately held company in the power sector has issued an unwrapped debut bond.
According to the company, proceeds from the bond will be deployed to expand its power generation capacity and accelerate its growth as an independent power producer, while also broadening its client base across West Africa.
The bond issuance recorded full subscription, attracting strong demand from a diverse group of institutional and retail investors, including Pension Fund Administrators, asset managers, and high-net-worth individuals.
Market observers noted that the oversubscription reflects growing investor confidence in Paras Energy’s credit profile, governance structure, and long-term strategic outlook, despite being its inaugural issuance.
The transaction also represents African Industries Group’s first long-dated debt instrument in Nigeria’s capital market, signalling a broader strategy to diversify funding sources and strengthen its capital structure for sustained growth.
Speaking on the development, Group Chief Financial Officer of African Industries Group, Mr. Munish Modi, described the issuance as a defining moment for both Paras Energy and the wider group.
“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,” Modi said.
He added that strong investor participation validated the company’s operational track record and strategic direction in the power sector.
RMB Nigeria’s Head of Debt Capital Markets, Ms. Laju Atake, said the transaction demonstrated that well-positioned private sector players in the power value chain can successfully access long-term funding without external guarantees.
She noted that the successful structuring and distribution of the bond underscored RMB Nigeria’s commitment to deepening Nigeria’s debt capital markets and supporting innovative financing solutions.
Also commenting, Executive Director and Head of Investment Banking for Broader Africa at RMB Nigeria, Mr. Chidi Iwuchukwu, said the full subscription of the bond highlights the depth of domestic liquidity and the importance of transparency and credit quality in attracting institutional capital.
He added that the transaction could encourage more private issuers in the power sector to tap into the debt capital market, potentially unlocking additional investment into Nigeria’s energy infrastructure.
The successful issuance is expected to strengthen confidence in Nigeria’s private energy financing landscape and support ongoing efforts to expand electricity generation capacity across the country.
