SG Holdings Limited, a leading downstream Oil and Gas company and a rising force in international shipping, has successfully completed its debut commercial paper (CP) issuance—Series 1 and 2—marking a significant milestone in its corporate journey.
Originally targeting ₦30 billion, the programme was met with strong demand from the investment community, ultimately raising ₦34.6 billion—an impressive 15% oversubscription. This remarkable response underscores the market’s confidence in SG Holdings’ financial strength, operational performance, and growth potential as a new entrant in Nigeria’s capital markets.
Launched on March 27, 2025, the CP programme attracted a broad spectrum of institutional investors, including asset managers, pension funds, finance houses, and other major financial institutions. The commercial papers were competitively priced in the ranges of 24–26% and 26–28%, reflecting robust investor appetite and the company’s solid credit standing. SG Holdings’ strong ratings—GCR (AA)/A1+ and Agusto& Co (A-)—further bolstered investor confidence.
These ratings are supported by the company’s exceptional financial performance and integrated operational footprint. According to GCR, “The ratings assigned to SG Holdings Limited are underpinned by its well-integrated asset base across the downstream oil and gas value chain, which has driven strong earnings and healthy free cash flows. The ratings also reflect the natural hedge provided by its USD-denominated revenues, margin expansion from profitable oil vessel leases, and a modest net debt position. The company’s strategic focus on oil and gas ocean transportation remains a key pillar of its strong business profile. SG Holdings has maintained impressive earnings growth, recording an annualised turnover increase of 79% in Q3 2024, following a 22% rise in the 2023 fiscal year.” The outlook was described as “very stable.”
The proceeds from the commercial paper issuance will provide SG Holdings with a cost-effective source of short-term financing, enhancing its liquidity and cash flow management. The programme also diversifies the company’s funding sources, reducing dependency on traditional bank lending. Its success has further reinforced the company’s credibility and standing within the capital market.
Commenting on the outcome, SG Holdings CEO, Mr. Deji Matthew Somoye, stated, “We are thrilled with the success of our maiden commercial paper programme. It reflects investors’ trust in our financial performance, leadership, and creditworthiness. This CP programme will serve as a vital financing tool to help us meet our strategic goals and drive further growth.”
SG Holdings is emerging as a dominant force in international shipping, with five ocean-going crude oil tankers in its fleet—two of which are Suezmax-class (165,000 DWT) vessels—collectively valued at over USD 350 million. No other Nigerian trading company owns comparable assets. The closest regional competitor, Stena Sonangol, is a joint venture tanker pool operated by Stena Bulk and Angola’s state oil company, Sonangol.
In the downstream oil and gas sector, SG Holdings has made significant infrastructure investments, including an ultramodern tank farm, private jetty, gas processing plant, and a growing network of retail stations, among other assets.
The company has experienced robust growth over the past five years, with total assets exceeding ₦350 billion as of December 2024. Supported by sound risk management, strong corporate governance, and a commitment to operational excellence and innovation, SG Holdings is well-positioned for sustained growth and value creation. Its strategic alliances with globally recognized entities—such as BP, Clarksons Shipping, Glencore, Shell UK, Union Maritime (UK), Litasco (Moscow), Coral Energy, Navig8 Shipping (UK), and Alpha Shipping (Turkey)—have played a pivotal role in driving its growth trajectory.
Looking ahead, SG Holdings is focused on deepening its market footprint, expanding into new geographies, and broadening its service offerings in international shipping.
