FCMB Capital Markets Limited has successfully led the issuance of a N11.85bn 10-year Series 2 Senior Guaranteed Fixed Rate Infrastructure Bond on behalf of GLNG Funding SPV Plc to support the development of a mini-Liquefied Natural Gas plant in Nigeria.
In a statement on Wednesday, the firm said the proceeds from the issuance will be used to finance the construction of a mini-LNG facility with a projected liquefaction capacity of 200,000 standard cubic meters of gas per day.
The project is expected to contribute to addressing Nigeria’s persistent power supply challenges by offering industries a cleaner and more cost-effective energy alternative to diesel. The initiative aligns with Nigeria’s push toward cleaner energy sources and energy transition goals.
The issuance was backed by InfraCredit, a AAA-rated infrastructure credit guarantee institution in Nigeria, which provided the necessary credit enhancement to attract institutional investors and ensure the success of the transaction.
The Managing Director of FCMB Capital Markets, Ikechukwu Omeruah, said the successful close of the bond issuance reflected strong investor confidence in Nigeria’s gas infrastructure and clean energy transition agenda.
“FCMB Capital Markets remains committed to financing projects that drive clean energy adoption and long-term economic impact,” Omeruah said. “We appreciate the trust placed in us by GLNG and the invaluable role played by InfraCredit and investors in enabling the successful conclusion of this transaction.”
He added that the transaction demonstrates FCMB Capital Markets’ strategic focus on supporting sustainable infrastructure projects and unlocking long-term value across critical sectors of the economy.
According to InfraCredit, the bond is expected to generate over 500 direct and 2,000 indirect jobs during its construction and operation phases, further contributing to Nigeria’s economic growth and employment creation.
According to the statement, gas adoption has been increasingly highlighted as a cost-saving and climate-friendly alternative in Nigeria.
A 2022 report by Clarke Energy estimates that manufacturers could save up to 30 per cent by switching to gas from the grid, and as much as 80 per cent compared to using diesel generators.
It added that FCMB Capital Markets, a subsidiary of FCMB Group Plc, has played a critical role in Nigeria’s capital markets, having raised over N3tn in debt and equity capital for major corporations over the past five years. The firm continues to position itself as a key partner in delivering innovative and impactful financing solutions across key sectors of the economy.
The successful issuance of the N11.85bn GLNG bond reinforces confidence in Nigeria’s infrastructure financing landscape and demonstrates the growing appetite for sustainable investments.
In 2024, The PUNCH reported that First City Monument Bank is offering up to N30m to help Nigerian households and small businesses procure solar panels, batteries, inverters, and other clean energy equipment.
