NBET completes first tranche of N4trn power sector bond programme

Orisemeke Benjamin

The Nigerian Bulk Electricity Trading Plc (NBET) have announced the successful close of the first tranche under the N4,000,000,000,000 Power Sector Multi-Instrument Issuance Programme.

The inaugural bond issue of N501,021,000,000 bond comprises a fully subscribed N300,000,000,000 bond issuance to the market (Asset Managers, Banks, Pension Funds and Retail Investors) and N201,021,000,000 bond issued to Power Generation Companies (GenCos) that have signed the Settlement Agreement.

The 7 year bonds which were issued by NBET Finance Company PLC (a Special Purpose Vehicle established for this transaction) are fully guaranteed by the full faith and credit of the Federal Government of Nigeria. 

The successful completion of this inaugural tranche marks a critical milestone in the implementation of the Programme and reflects strong market confidence in the Government’s reform agenda for the power sector.

Commenting on the Bond Issuance, the Acting Managing Director of NBET, Mr. Johnson Akinnawo said: “The successful close of the ₦501 billion bond represents a major step forward in resolving the long-standing challenge that has constrained the power sector for years. This intervention will significantly improve liquidity across the value chain, enable operators to stabilize their operations and support renewed