IFC Supports $400m Seven Energy Bond Issuances for Nigeria

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.