Paras Energy raises ₦15B power-sector bond on Nigeria's FMDQ Exchange
What's the deal? Paras Energy Funding SPV PLC has listed a ₦15 billion (about $10.9 million) five-year fixed rate bond on Nigeria's FMDQ Securities ExchangeDealroom has a profile for this one. Try Dealroom →. The Series 1 note carries an 18% coupon and sits under a wider ₦25 billion bond issuance programme.
Who's behind it? The special purpose vehicle raises capital for the Paras Energy group, a privately owned independent power producer that supplies electricity to Nigeria's national grid and industrial off-takers. Rand Merchant Bank Nigeria Limited acted as lead sponsor, alongside FCMB Capital Markets Limited.
What's the money for? Proceeds will fund power generation and infrastructure expansion, while refinancing existing obligations, according to the exchange.
Why now? Nigeria continues to prioritise reliable energy infrastructure, and the debt markets are filling a financing gap for power producers. "The listing... reflects the important role the debt capital markets play in financing Nigeria's power sector," said Tumi Sekoni, group chief operating officer at FMDQ Group.
The signal: Debt, not equity, remains the funding route of choice for Nigeria's capital-hungry power sector. With a five-year tenor and a fixed 18% coupon, the deal shows how independent producers are tapping long-term local markets to expand generation and shore up grid reliability.
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Image credit: Chris Hunkeler
