Oando Plc is set to raise N54.579 billion from the capital market to enable it repay part of N60 billion syndicated loan used to acquire upstream assets and swamp drilling rigs, amongst others. The integrated energy firm said the funds would be raised from existing shareholders via a rights issue of 4.548 billion shares at N12 per share.
Oando said it received regulatory approval for its rights issue from the Securities and Exchange Commission. The rights issue, which will open on December 28, 2012 and close on Wednesday, February 6, 2013, has Vetiva Capital Management Limited as the lead issuing house while FBN Capital Limited and FCMB Capital Markets Limited are joint issuing houses.
Specifically, the funds would be used to repay part of the loan used to acquire upstream assets and swamp drilling rigs, part-financing of acquisition of upstream and midstream assets by Oando’s upstream subsidiary, Oando Energy Resources and investment in working capital to support increased level of business.