Table of Contents
Key Points
- Nigerian energy firm Oando secures board approval to raise $327.5 million via equity and debt to support new growth and financial restructuring.
- Oando seeks shareholder approval to convert $300 million of existing debt into equity, aiming to simplify its capital structure and reduce pressure.
- Oando secures expanded reserve-based lending from Afreximbank, boosting oil and gas production targets ahead of its 2029 output goals.
Nigerian oil mogul Wale Tinubu is guiding Oando Plc into a new chapter as the energy company prepares to raise up to N500 billion ($327.5 million) through a mix of equity and debt. If approved, the funds will help the company pursue fresh business opportunities and strengthen its financial position.
Oando targets $327 million via share sale
The plan will be presented to shareholders at Oando’s 46th Annual General Meeting. According to the proposal, the capital raise would be carried out at market-driven prices, either through book building or other valuation methods, once regulatory approvals are secured.
In a statement, Oando said it had received board approval to raise up to N500 billion ($327.5 million)—or its equivalent in foreign currency—through the issuance of as many as 10 billion ordinary shares. The fundraising could take the form of public offerings, private placements, rights issues, debt-to-equity conversions, or a combination of financing options.
Oando eyes flexible financing tools
Alongside the capital raise, Oando is also working to ease its debt burden. The board is seeking permission to convert up to $300 million of an existing reserve-based lending (RBL) facility into equity—a move that would help ease financing pressure and simplify its capital structure. “The Board is and is hereby authorized to enter into capital restructuring agreements with key stakeholders and lenders,” the company said.
Looking further ahead, Oando plans to set up a multi-instrument issuance program of up to $1.5 billion (or its naira equivalent), giving it the flexibility to issue bonds, notes, or other financial instruments when needed. The company is also proposing to raise its share capital from N5 billion to N20 billion by creating 30 billion additional ordinary shares.
Shareholders will also vote on several corporate matters, including the reappointment of BDO Professional Services as auditors, directors’ remuneration, the election of audit committee members, and resolutions related to transactions involving related parties.
Wale Tinubu’s oil empire delivers big win
Under Tinubu, Oando has grown into a key player in Nigeria’s energy sector, with operations spanning upstream, midstream, and downstream. Since its transformation from Unipetrol in 2003, the company has expanded steadily, with Tinubu—through Ocean and Oil Development Partners, a joint venture with Omamofe Boyo—holding a 66.67 percent controlling stake.
Oando’s earnings highlight its financial position. In the first quarter of 2025, profit jumped 90.5 percent to N113.06 billion ($72.94 million), up from N59.35 billion ($38.28 million) in the same period last year. The rebound was largely due to a swing in net finance income, rising to N67.78 billion ($43.72 million) from a previous loss, and a major income tax credit of N165.62 billion ($106.85 million). Despite an operating loss of N120.34 billion ($77.63 million), driven by a one-off fair value adjustment, the company managed to post a solid bottom line.
Oando ups reserve lending to $375 million
Earlier in July, Tinubu also secured fresh funding support from the African Export-Import Bank (Afreximbank), which increased Oando’s reserve-based lending facility to $375 million. The boost follows the decision to pay down most of a previous $525 million facility obtained in 2019, reducing the debt to $100 million by early 2024. The new funding is expected to help Oando ramp up its production targets to 100,000 barrels of oil and 1.5 billion cubic feet of gas per day by 2029—marking another step forward for the company’s long-term expansion plans.
