Oando Plc has announced plans to raise up to N500 billion, or its foreign currency equivalent, from the Nigerian or international capital markets, subject to shareholder approval.
The company disclosed this in a notice filed with the Nigerian Exchange (NGX), which outlines several key resolutions to be presented at its 46th Annual General Meeting scheduled for August 11, 2025.
According to the disclosure, Oando plans to raise the funds by issuing up to 10 billion ordinary shares of 50 kobo each, either as a standalone offering or part of a larger capital-raising programme.
The company listed several options for the raise, including public offerings, private placements, rights issues, and debt-to-equity conversions.
It added that the final approach, whether a single method or a combination, would be determined through book building, valuation methods, or any terms and timelines the board considers appropriate.
In addition to this, the board also included other capital-raising initiatives in the notice that will require shareholder approval at the meeting.
Other capital raising initiatives
The board also revealed plans to enter into capital restructuring agreements with key stakeholders and lenders to convert $300 million out of the company’s existing $375 million Reserve-Based Lending (RBL) debt into equity.
This conversion, according to the disclosure, will be subject to the terms and conditions determined by the Directors.
In addition, the board is seeking shareholder approval to establish a multi-instrument programme of up to $1.5 billion or its naira equivalent, aimed at enhancing the company’s capital-raising capacity.
- The proposed instruments under the programme include bonds, certificates, and other securities, to be issued at a time and under terms that will be set by the board, subject to necessary regulatory approvals.
By combining this debt-to-equity conversion with the launch of a flexible multi-instrument programme, Oando aims to reduce interest expenses, improve capital structure, and strengthen its overall financial position.
The loan facility
In early June 2025, Oando Plc announced that its upstream subsidiary, Oando Oil Limited, had successfully increased its reserve-based loan facility to $375 million, following a fresh capital injection from Afreximbank and Mercuria.
The refinancing of the Reserve-Based Lending (RBL2) facility was led by the African Export-Import Bank (Afreximbank), with additional support from Mercuria Asia Resources PTE Limited.
Originally secured in 2019 at $525 million, the facility was gradually reduced to $100 million by the end of 2024, creating room for refinancing and strategic repositioning.
Oando had stated that the renewed facility would provide critical funding to ramp up crude oil production and strengthen its upstream operations.
Converting $300 million of the loan into equity will help reduce debt servicing costs, improve the company’s balance sheet, and enhance its long-term financial flexibility.
