Forte Oil has raised N9 billion ($30 million) from the sale of five-year bonds, with an interest rate coupon of 17.5%, its advisers said on Wednesday. They added that the bonds, which were issued under a N50 billion debt programme, came at a par value of N1,000 each.

The Nigerian oil company in March 2016 disclosed plans to raise capital to expand its operations in the country, either through a share or bond sale. The West African country has been issuing bonds at yields below the inflation rate of 18.55% as at December 2016. This has made it difficult for corporates to raise debt, as the government increases its borrowing to move the country out of its first recession in 25 years.

In January this year, the government sold a five-year bond at 16.89% to raise N34.95 billion.

Anita Fatunji