Washington, DC October 15, 2014—IFC, a
member of the World Bank Group, has subscribed to $50 million of notes
in the inaugural bond issuances by Seven Energy International Limited,
one of the few companies developing and commercializing stranded gas that
is critical for expanding Nigeria's power generation. Seven Energy is Nigeria’s
first unlisted oil and gas company to tap the international capital markets.
The company’s bond issuances raised
a total of $400 million. Part of the proceeds will fund the construction
of the Oron‐Calabar pipeline which will provide much needed gas for power
projects in the city of Calabar in southeastern Nigeria.
“Seven Energy welcomes and values the
continued support of IFC in the development of its business in Nigeria.
Seven Energy's objective is to be Nigeria's dominant integrated gas developer
and supplier, with a reputation for reliability and operating to the highest
international standards,” said Phillip Ihenacho, CEO, Seven Energy.
Lance Crist, IFC Global Head of Oil
and Gas, said, “This inaugural bond complements Seven Energy’s funding
strategy as it expands operations to help address Nigeria’s urgent energy
needs. It has also attracted a new class of investors to the sector, showcasing
the critical role of capital markets in connecting international and domestic
savings to a country’s private sector financing needs.”
Earlier this year, IFC made an equity
investment of $75 million in Seven Energy. The IFC African, Latin American
and Caribbean Fund also invested $30 million in equity in the company.
IFC’s investment in Seven Energy supports the World Bank Group’s Nigeria
Energy Business Plan to double power capacity in Nigeria within 5 years
by addressing all points of the energy value chain. IFC is also working
on a wide range private sector projects in Nigeria’s gas supply, power
generation and distribution sectors.
As part of its efforts to support the
development of capital markets, IFC helps private sector companies in emerging
markets to access international and domestic bond markets.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in about 100 countries, we use our capital, expertise, and
influence to help eliminate extreme poverty and boost shared prosperity.
In FY14, we provided more than $22 billion in financing to improve lives
in developing countries and tackle the most urgent challenges of development.
For more information, visit www.ifc.org
About Seven Energy
Seven Energy International Limited is an independent Nigerian integrated
oil and gas development, production and gas distribution company founded
in 2004. With the backing of strategic long-term investors and main
offices in Lagos and London, the Group has a unique focus on the emerging
Nigerian domestic gas market. The Group’s upstream assets include
licence interests in the Uquo Field and the Stubb Creek Field (south east
Niger Delta), an indirect interest in OMLs 4, 38 and 41 through a Strategic
Alliance Agreement with Nigerian Petroleum Development Company (north west
Niger Delta) and a licence interest in OPL 905 (Anambra Basin). Its
midstream infrastructure assets, focused on south east Niger Delta, include
the 200 million cubic feet per day (“MMcfpd”) Uquo Gas Processing Facility
and a gas pipeline network of 230 km with distribution capacity of 600