Paras Energy Funding SPV Plc has successfully issued a ₦15.00 billion 5-year Fixed Rate Senior Unsecured Bond at a coupon of 18.00% per annum. The bond was issued under a ₦25.00 billion Bond Issuance Programme and marks the first time a privately held power sector company in Nigeria has issued an unwrapped bond at debut. Rand Merchant Bank Nigeria Limited served as Lead Issuing House and Bookrunner for the transaction.
The bond issuance attracted strong demand and was fully subscribed by a diversified investor base, including Pension Fund Administrators, Asset Managers, and High Net-Worth Individuals. Proceeds will be used to expand Paras Energy's power generation capacity and grow its operations as an independent power plant operator, with expansion plans extending across West Africa.
Paras Energy operates across the power value chain, including power generation, solar engineering, substations, transmission infrastructure, and operations and maintenance. It is part of African Industries Group, an industrial conglomerate with over 50 years of presence in Nigeria. This transaction is also the group's first issuance of a longer-dated tenor instrument in Nigeria's debt capital markets.
Mr Munish Modi, Group Chief Financial Officer of African Industries Group, said the issuance marks a defining moment for Paras Energy and the group. He described it as evidence of their commitment to Nigeria's energy security through innovative financing. Laju Atake, Head of Debt Capital Markets at RMB Nigeria, said the transaction shows private sector players in the power sector can access long-term funding without guarantees. Chidi Iwuchukwu, Executive Director at RMB Nigeria, said the full subscription reflects domestic liquidity and the importance of transparency and credit quality.
A privately held power company secured a ₦15 billion bond without government backing, while many public projects still struggle to access funding. This highlights a growing appetite for credible private sector instruments in Nigeria's capital markets. Investors are rewarding credit quality and transparency, not just ownership structure. The success sets a benchmark for other private firms aiming to scale without relying on public guarantees.
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