Oando Plc Proposes N500 Billion Capital Raise, $300 Million Debt Conversion, and $1.5 Billion Funding Programme

Oando Plc has unveiled an ambitious suite of capital-raising proposals ahead of its 46th Annual General Meeting on August 11, 2025. Subject to shareholder approval, the energy conglomerate aims to strengthen its balance sheet, cut interest costs, and accelerate its upstream growth by tapping both equity and debt markets.

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Share Issuance to Raise N500 Billion

Oando plans to issue up to 10 billion ordinary shares of 50 kobo each—equivalent to roughly N500 billion or its foreign-currency equivalent. The offering could be structured as:

·        Public offerings

·        Private placements

·        Rights issues

·        Debt-to-equity conversions

The board will select the optimal mix and timing through book building and valuation processes to maximize investor interest and market conditions.

$300 Million Debt-to-Equity Conversion

To further de-leverage, Oando proposes converting $300 million of its existing $375 million Reserve-Based Lending (RBL) facility into equity. This restructuring:

·        Lowers future interest expenses

·        Strengthens the company’s capital base

·        Enhances long-term financial flexibility

Final terms and conditions will be negotiated with lenders and subject to shareholder sign-off.

$1.5 Billion Multi-Instrument Funding Programme

Oando is also seeking approval to establish a flexible multi-instrument programme capped at $1.5 billion (or naira equivalent). Under this umbrella, the company may issue:

·        Bonds

·        Certificates

·        Other debt or hybrid securities

Issuance timing, instrument mix, and pricing will be determined by the board in line with regulatory requirements, providing agility to seize market opportunities.

Reserve-Based Lending Facility Update

In June 2025, Oando’s upstream arm, Oando Oil Limited, refinanced its RBL facility to $375 million with support from Afreximbank and Mercuria. Originally $525 million in 2019 and drawn down to $100 million by late 2024, the refreshed facility will:

·        Fund increased crude production

·        Bolster upstream operations

·        Lay the groundwork for the proposed debt conversion

By combining equity issuances with debt restructuring and a dynamic funding programme, Oando aims to improve its financial profile and fuel future growth.

Credit: Nairametrics.

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