Seplat, Co-founded By Nigerian Tycoon Austin Avuru, Unveils 650 Million Notes To Slash Debt Costs

Seplat Energy, the Nigerian energy company co-founded by Austin Avuru, has announced a 650 million senior notes offering due in 2030 as part of a broader plan to cut financing costs and improve its capital structure.

The dual-listed company, trading on both the London Stock Exchange and the Nigerian Exchange, disclosed the offering in a regulatory filing on Tuesday . The proceeds will be used to buy back its existing 650 million senior notes, which carry a 7.75 percent interest rate and are set to mature in April 2026.

As part of the refinancing process, Seplat has also launched a tender offer allowing investors to sell back their 2026 notes before the March 18, 2025, deadline. Settlement is expected by March 21, 2025, subject to financing conditions. This will help us manage our financial liabilities more efficiently, strengthen our balance sheet, and maintain long-term stability, the company said.

Seplat confirmed that if the financing condition is met, any remaining 2026 notes will be redeemed under the terms of its 2021 bond agreement. Once the tender offer is completed and the financing condition is satisfied, we plan to redeem any remaining 2026 notes under the indenture dated April 1, 2021, the company added.

The company also noted that the new bonds are not registered under U.S. securities laws, meaning they can only be sold under specific exemptions in the United States, European Economic Area EEA, and the United Kingdom. This announcement does not constitute an offer to sell securities in the United States, Seplat clarified, emphasizing compliance with regulatory requirements.