EAC Advisory Limited

EAC Advisory Limited was set up to offer core investment banking services, i.e. Advisory and Capital Raising services to African businesses and governments.

This Business Division is organized to provide financial advisory and related services across Project Finance, Equity and Debt Capital Markets, Mergers and Acquisitions, Structured Trade and Loan Syndication transactions.

It currently advises across wide-range project finance services to institutions, government organizations and corporations.

Our advisory scope cuts across sectors such as Oil and Gas, Energy, Real Estate, Information Communication Technology, Media and Entertainment and Health care.

FINANCIAL ADVISORY

We support our clients through a combination of advisory services.

We are responsible for advisory assignments including project finance transactions, mergers & acquisitions, corporate restructuring, divestitures and spin-offs.

Our executive & management team members led as well as worked on teams that closed a diverse range of leading transactions including the following:

  • Series 1 and 2 of LASG 500bn Bond Program
  • Restructuring of the US$385 Million syndicated Accugas Limited Long-Term Facility
  • US$700 Million Reserved Based Lending by Seplat Petroleum Development Company
  • Restructuring of United Bank for Africa Plc from a Universal Banking to a full-fledged Commercial Bank
  • $300m FGN Diaspora Bond
  • NGN56Bn BGs Assignments by NBET to GenCos

CAPITAL MARKETS

Our team has had extensive experience structuring and executing a significant range of capital market transactions such as issuance of a variety of corporate and sub-national debt instruments as well as equity products.

The EAC management also has deep institutional knowledge and a proven track record in both domestic and international capital markets advisory transactions.

Past capital market transactions originated, led and / or executed by our executives and team members include but are not limited to:-

  • N4.75Bn Benue State Fix Rate Subordinated Notes
  • N31.95Bn Cross Rivers State Fix Rate Subordinated Notes
  • N4.1Bn Transcorp Hotels Initial Public Offering
  • N30Bn Fidelity Bank Bond
  • N25 Billion Edo State Bond
  • NGN 50Bn Transcorp Plc Bond
  • NGN 9Bn Forte Oil Bond Issuance Program
  • Various other Corporate & Subnational Debt Transactions

At EAC Advisory, we assist public and private institutions in meeting their financing needs. Through innovative thinking, and strong relationships, we help clients to raise capital, expand and or restructure their businesses and to better align their working capital. We advise them on mergers, acquisitions, and divestitures. We work closely with our clients, and our strong network of partners to ensure that our clients are able to run their businesses more efficiently, generating stronger and sustainable profits for their shareholders.

A typical client for advisory services will be a public institution that is authorized to raise capital or a private business which is viable and able to operate legally within its jurisdiction. A typical client is also one with good corporate governance and financial records. In general, our clients range from large public and private institutions, to small and medium enterprises seeking to raise expansion capital to position themselves for impact in their field
A financial advisor adds value to your institution in many ways. Firstly, the financial advisor is expected to provide independent and unbiased advice which will be trusted by lenders and investors. Secondly, the financial adviser has a network of investors who may be interested in your line of business, and is likely better placed to present your information in a manner that is easily understood by the investors, thus, saving you time, improving your options for meeting your financing needs and achieving your goals.
You can raise capital by selling more shares (equity) in your business, or by borrowing short, medium- or long-term capital (debt). You can also raise capital through quasi-equity or other hybrid instruments with features of equity and debt.
No. Only public unquoted Companies (i.e. not on the stock exchange) can do Private Placements

Corporate Bonds are issued by corporations. Corporate bonds are issued by companies of all sizes. Bondholders are not owners of the corporation. But if the company gets into financial trouble and needs to dissolve, bondholders must be paid off in full before shareholders get anything. If the corporation defaults on any bond payment, any bondholder can go into bankruptcy court and request the corporation be placed in bankruptcy. Corporate bonds issued by Public companies are regulated by the SEC Nigeria; Bonds issued by private companies are not regulated by the SEC Nigeria.

Sub-National (or State) Bonds, issued by States (also called municipal bonds in some parts of the world). Some state bonds are backed by the tax authority of the state, while others rely on earning income to pay the bond interest and principal. Most State Bonds, in fact all except for Lagos State, issued in Nigeria are also issued with an Irrevocable Standing Payment Order (ISPO), a credit enhancement tool as it is backed by the full faith and credit of the Federal Government of Nigeria. In other words, it improves the credit rating of the instrument and enhances the attractiveness of the instrument to prospective investors.

FGN (Federal Government of Nigeria) Bonds, issued by the Federal Government of Nigeria.

Bonds around the world commonly have maturities up to 30 years. In Nigeria, the FGN bonds have maturity ranges from a few months to 20 years. Corporate and State bonds in Nigeria have maturities up to 7 years but could be longer.

They are less expensive than a bank loan, including fees, debt service, and expenses.

  • Longer term financing available, greater than tenor of a bank loan (generally a year or two) or through the issuance of commercial paper (less than nine months)
  • Tax Waiver provides tax benefits to the issuer and to the investor.
  • A company will not dilute existing share ownership with a bond issuance.