This article first appeared on the Hawilti+ terminal on 19 July 2023.
Nigerian natural gas supply company Green Liquified Natural Gas Limited (GLNG) has secured its first debt funding as it looks to boost its operations in Africa’s biggest economy.
The company sold NGN5 billion ($6.5m) of 10-year series bonds due 2033 under its NGN50 billion ($65m) Debt Issuance Programme. Nigerian financial guarantor InfraCredit provided guarantee for the facility.
The bond proceeds will enable GLNG to develop its Liquified Natural Gas plant and expand its CNG distribution and power-as-a-service capabilities, according to an official statement, noting the bond issue was oversubscribed by 108% by ten institutional investors.
“This maiden bond transaction is an important milestone for GLNG, as it provides the leverage to finance our ambitious plan to establish a state-of-the-art LNG plant in Nigeria,” Chairman of GLNG, Olajide Rosiji, said in the statement.
“More importantly, the success of this transaction reinforces our steadfast commitment to contribute to Nigeria’s clean energy and transportation landscape and foster sustainable economic growth in the region.
GLNG already operates two gas compression and distribution facilities in Ogun State with combined capacity of approximately 10.5 MMscf/d, making it the largest in Nigeria. The company currently delivers an average of 4.2 MMscm of CNG per month to industrial and Autogas customers in southwest Nigeria where access to piped gas infrastructure has been lacking.
Nigeria, Africa’s biggest oil producer, holds some of the world’s biggest gas reserves. But while the country’s gas has benefited industrialization and power generation overseas through LNG exports, its domestic utilization remains limited. Boosting local consumption is now at the centre of the government’s agenda as it promotes gas as a transition and cleaner fuel.