CardinalStone closes N728.97bn Power Sector Bond, boosting Nigeria’s power liquidity
CardinalStone Partners Limited announced the successful close of the N728.97 billion Series 2 Power Sector Bond, serving as Lead Financial Adviser and Lead Issuing House. The bond comprises an oversubscribed N402 billion tranche sold to domestic investors (banks, pension funds, the Sovereign Wealth Fund, asset managers, high‑net‑worth individuals and retail) and N326.97 billion issued to participating Power Generation Companies. The seven‑year amortizing bonds were priced at a 18.0% clearing yield and are fully guaranteed by the Federal Government of Nigeria.
This issuance brings the first phase of the FG’s power sector obligation programme to N1.23 trillion, aiming to clear verified legacy debts and strengthen liquidity across the electricity value chain. By facilitating settlements to GenCos and their suppliers, the bond is expected to add certainty to power and gas markets, support Nigeria’s capital‑market depth, and reinforce CardinalStone’s role in large‑scale infrastructure financing.
The strong demand for the investor tranche signals market confidence in government‑backed securities. Investors and stakeholders can track upcoming tranches via the Debt Management Office’s portal and consider similar instruments for portfolio diversification. With the bond now settled, will you view this as a signal to increase exposure to Nigerian infrastructure debt, or wait for greater transparency on how the proceeds settle legacy obligations?