Oando’s Strategic Financial Overhaul: Raising N500 Billion and Debt Conversion

Hey energy enthusiasts, exciting developments are brewing at Oando Plc, Nigeria’s prominent indigenous energy firm. The company is set to raise up to N500 billion by issuing approximately 10 billion ordinary shares at 50 kobo each. This capital injection could occur through public offerings, private placements, rights issues, or other methods, as determined by the board and subject to regulatory approvals.

Oando plans to convert about $300 million of its Reserves-Based Lending (RBL) debt into equity, with terms set by the board. To push this forward, they’ll seek shareholder approval at the 46th Annual General Meeting on August 11, 2025.

Additionally, the board is eyeing authorization for a $1.5 billion (or Naira equivalent) multi-instrument issuance program, including bonds and commercial papers, with provisions for handling oversubscriptions. This signals Oando’s drive for financial resilience in Nigeria’s dynamic energy sector. What could this mean for investors and the industry? 

References

“Oando Eyes Fresh N500bn, Conversion of $300m Debt to Equity.” Business Post Nigeria, accessed via https://businesspost.ng/economy/oando-eyes-fresh-n500bn-conversion-of-300m-debt-to-equity/. Published date not specified in source, but relevant to upcoming AGM on August 11, 2025.