Pivot Unveils N100bn Commercial Paper Programme To Finance Operations

Pivot Integrated Energy Services Limited has issued a commercial paper (CP) of up to N100 billion under its Series 1 of the N300 billion Commercial Paper Programme, as the indigenous downstream energy company seeks to raise short-term funding to improve its working capital and fund its business expansion.

The issuance, arranged by Pathway Advisors Limited as Lead Arranger and Issuing House, has opened for subscription and is set to close on July 31, 2026.

According to the transaction details, the Series 1 issuance consists of three tranches with different tenors. Tranche A is a 180 day instrument with a discount rate of 17.5 per cent and a yield of 19.15 per cent. Tranche B has a tenor of 270 days, a discount rate of 19.5 per cent and a yield of 22.79 per cent while Tranche C has a tenor of 364 days, a discount rate of 19.69 per cent and a yield of 24.50 per cent.

The minimum subscription is N5 million or 5,000 units at N1,000 per unit, with further investments accepted in multiples of N1,000.

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Proceeds from the issuance will be deployed to finance working capital and support its operations in the importation, trading, storage, distribution and supply of refined petroleum products across Nigeria and selected African markets, the company said.

The offer is expected to provide investors an opportunity to tap into the growth of the downstream energy company which said it has achieved sustained revenue growth, secured strong off-take arrangements and continued to improve profitability.

Pivot, an indigenous integrated downstream energy company supplies Premium Motor Spirit (PMS), Automotive Gas Oil (AGO) and Aviation Turbine Kerosene (ATK) to a wide customer base that includes bulk buyers, distributors, industrial users, logistics operators, manufacturers and retail-linked channels across major commercial centers such as Lagos, Calabar and Port Harcourt.

The company is also one of the 20 approved off-takers of the Dangote Refinery Premium Motor Spirit Consortium with a target volume allocation of 300 million litres per quarter.

The Series 1 Commercial Paper received short-term ratings of A3 by Agusto & Co, A3 by Global Credit Rating and A1 by DataPro Limited on the credit quality of the issuance, which reflects the company’s credit standing in the domestic debt market.

The issuance of Series 1 under the N300 billion Commercial Paper Programme by Pivot is the first drawdown of the N100 billion and is a reflection of the increased activity in the debt capital market in Nigeria as corporates continue to tap into commercial paper issuances to meet their short-term funding requirement, particularly as market conditions change.