Pivot’s N100 Billion Commercial Paper Debut Oversubscribed in Landmark African Growth Push

Pivot Integrated Energy Services Limited (Pivot), a leading indigenous integrated downstream energy company, has successfully completed has raised N100 billion ($75.1 million) through its first commercial paper issuance, with investor demand exceeding the amount on offer at N100.08 billion ($75.12 million).

The issuance was completed under Pivot’s N300 billion ($225.2 million) Commercial Paper Programme and marks the indigenous downstream energy company’s first entry into Nigeria’s debt capital market. 

The oversubscription gives Pivot additional funding for its operations in the trading, storage, distribution and supply of refined petroleum products in Nigeria and selected African markets.

For Pivot, the transaction provides a new source of short-term funding as the company expands its activities in the downstream oil and gas sector. It also gives the company access to Nigeria’s institutional investor base through the commercial paper market.

Investors backed Pivot’s next phase

Mr. Babajide Babatope, Managing Director of Pivot Integrated Energy Services Limited, said the successful issuance was an important moment for the company, particularly given that it was its first transaction in the Nigerian debt capital market.

“Today marks a defining chapter in Pivot’s growth story. Entering Nigeria’s debt capital market for the first time and achieving an oversubscription is an extraordinary milestone for the Company,” Babatope said.

He said the level of demand showed that investors had confidence in Pivot’s business, management team and plans for expansion.

“We are proud and humbled by the confidence demonstrated by our investors,” he said. “This successful issuance provides us with additional funding capacity to execute our growth strategy, strengthen our operations and scale our business across Nigeria and selected African markets.”

Babatope added that Pivot would remain focused on building a resilient downstream energy business while maintaining its focus on its existing operations.

Pathway Advisors led the transaction

Pathway Advisors Limited acted as Transaction Sponsor, Financial Adviser, Lead Issuing House and Lead Arranger for the issuance, overseeing the transaction from its structuring through to completion.

Mr. Adekunle Alade (MBA, FCA, M.CIoD), Founder and Chief Executive Officer of Pathway Advisors, said the demand for the notes was a strong indication of how investors viewed Pivot’s business and management.

“Debut issuances are always the ultimate test of market confidence. Pivot passed that test emphatically,” Alade said.

He said the N100 billion issuance attracted significant interest from institutional investors and reflected confidence in the company’s fundamentals and the investment proposition presented to the market.

“This is a landmark achievement for Pivot and a significant milestone for Nigeria’s commercial paper market,” Alade said.

“We are particularly proud to have played a central role in bringing Pivot successfully into the debt capital market, and we look forward to supporting the Company through the subsequent phases of its N300 billion ($225.2 million) Commercial Paper Programme.”

The transaction attracted participation from Pension Fund Administrators, insurance companies, commercial and merchant banks, asset management companies, investment funds, corporate treasuries and other institutional and sophisticated investors.

For Pivot and Pathway Advisors, the investor response provides a strong start to the wider N300 billion programme, which allows for additional commercial paper issuances as the company requires funding.

Banks and advisers supported the issuance

The transaction was arranged with the support of a group of financial institutions and professional advisers.

The Joint Arrangers were Coronation Merchant Bank, Quantum Zenith Capital & Investments Limited, FCMB Capital Markets Limited, AIICO Capital Limited, FSDH Capital Limited, FSL Capital Limited, Greenwich Capital Markets Limited, United Capital Limited, Mainstreet Capital Limited, Rand Merchant Bank and First Ally Advisory Limited.

ProvidusUnity Bank and Fidelity Bank Plc served as Collecting and Paying Agents, while Globus Bank Limited and Polaris Bank Limited also participated in the transaction. Alliance Law Firm acted as Solicitor.

Pivot thanked the participating investors and advisers for their role in completing the company’s first commercial paper transaction, saying their participation was important to the successful close of the issuance.

The company said it expects to build on the relationships established through the transaction as it proceeds with subsequent issuances under its N300 billion Commercial Paper Programme.

Pivot expands across Nigeria and Africa

Founded in December 2017, Pivot Integrated Energy Services Limited is an indigenous integrated downstream energy company involved in the importation, trading, storage, distribution and supply of refined petroleum products.

Its product portfolio includes Premium Motor Spirit, Automotive Gas Oil and Aviation Turbine Kerosene, which it supplies across Nigeria and selected African markets.

Pivot is one of 20 approved off-takers under the Dangote Refinery PMS Consortium, with a target allocation of 300 million litres per quarter. The company has also expanded beyond Nigeria, with operations in Ghana and plans to enter Tanzania.

Pivot’s credit ratings include A3 (Short Term) / Bbb- (Long Term) from Agusto & Co., A3 (Short Term) / BBB (Long Term) from GCR Ratings, and A1 (Short Term) / A- (Long Term) from DataPro Limited.

The N100 billion Series 1 issuance gives Pivot a new funding channel as it continues to build its refined petroleum trading and distribution business, while the N300 billion programme provides room for further access to the commercial paper market.