Oando Plc has introduced plans to lift as much as N500 billion, or its international foreign money equal, from the Nigerian or worldwide capital markets, topic to shareholder approval.
The corporate disclosed this in a discover filed with the Nigerian Alternate (NGX), which outlines a number of key resolutions to be offered at its forty sixth Annual Normal Assembly scheduled for August 11, 2025.
In accordance with the disclosure, Oando plans to lift the funds by issuing as much as 10 billion atypical shares of fifty kobo every, both as a standalone providing or half of a bigger capital-raising programme.
The corporate listed a number of choices for the elevate, together with public choices, personal placements, rights points, and debt-to-equity conversions.
It added that the ultimate method, whether or not a single methodology or a mix, could be decided by way of ebook constructing, valuation strategies, or any phrases and timelines the board considers applicable.
Along with this, the board additionally included different capital-raising initiatives within the discover that may require shareholder approval on the assembly.
The board additionally revealed plans to enter into capital restructuring agreements with key stakeholders and lenders to transform $300 million out of the corporate’s present $375 million Reserve-Based mostly Lending (RBL) debt into fairness.
This conversion, in accordance with the disclosure, will probably be topic to the phrases and circumstances decided by the Administrators.
As well as, the board is looking for shareholder approval to ascertain a multi-instrument programme of as much as $1.5 billion or its naira equal, aimed toward enhancing the corporate’s capital-raising capability.
By combining this debt-to-equity conversion with the launch of a versatile multi-instrument programme, Oando goals to cut back curiosity bills, enhance capital construction, and strengthen its general {financial} place.
In early June 2025, Oando Plc introduced that its upstream subsidiary, Oando Oil Restricted, had efficiently elevated its reserve-based mortgage facility to $375 million, following a recent capital injection from Afreximbank and Mercuria.
The refinancing of the Reserve-Based mostly Lending (RBL2) facility was led by the African Export-Import {Bank} (Afreximbank), with further assist from Mercuria Asia Assets PTE Restricted.
Initially secured in 2019 at $525 million, the power was steadily lowered to $100 million by the tip of 2024, creating room for refinancing and strategic repositioning.
Oando had acknowledged that the renewed facility would offer vital funding to ramp up crude oil manufacturing and strengthen its upstream operations.
Changing $300 million of the mortgage into fairness will assist scale back debt servicing prices, enhance the corporate’s stability sheet, and improve its long-term {financial} flexibility.
