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GLNG Funding SPV PLC has announced the offer of up to N7.5 billion Series 4 Commercial Paper under its established N30 billion Commercial Paper Programme.
This issuance marks the Issuer’s third entry into the Nigerian short-term debt market, following its successful Series 1 issuance in July 2025, which was oversubscribed by 3%, and its successful Series 2 & 3 issuances in December 2025 by 11%.
The Offer, which opened on February 13, 2026, is scheduled to close on Friday, February 20, 2026.
What the offer circular is saying
- Issuer: GLNG Funding SPV PLC
- Co-Obligors: Green Liquified Natural Gas Limited (GLNG) and Green Fuels Limited (GFL)
- Tenor: 364 days
- Discount Rate (per annum): 19.3651%
- Implied Yield (per annum): 24.0000%
- Settlement Date: Monday, 23rd February 2026
- Maturity Date: Monday, 22nd February 2027
- Minimum Subscription: Minimum of N5,000,000 and multiples of N1,000 thereafter
- Tax Consideration: Applicable taxes shall apply on the instrument, except otherwise exempt
- Use of Proceeds: To support the Promoter’s short-term working capital and funding requirements
- Source of Repayment: From the co-obligors’ operating cash flows
- Quotation: FMDQ Securities Exchange Limited
The Companies behind the offer
GLNG Funding SPV PLC is a special purpose vehicle established solely to raise capital through the issuance of debt instruments, including bonds and other securities, on behalf of Green Fuels Limited (GFL) and Green Liquefied Natural Gas Limited (GLNG), collectively referred to as the Sponsors/Promoters.
- Greenfuels Limited, one of the Promoters, was incorporated in 2007 and is today a leading player in Nigeria’s industrial energy value chain.
The Company operates the largest compressed natural gas (CNG) compression and distribution facility in Nigeria, with a total installed capacity of about 17.5 million standard cubic feet per day (mmscfd).
From its operational bases in Ota and Abeokuta, Ogun State, GFL serves a wide range of multinational and blue-chip industrial clients, including Nestlé Nigeria, Nigerian Breweries (Heineken), Cadbury, Guinness, Nigerian Bottling Company, Fan Milk Plc, Comcraft Group, Intercontinental Hotel, Island Power Ltd, Sumal Foods Ltd, Crown Ceramics Ltd, and Tosett Agro, among others.
- Another promoter, Green Liquified Natural Gas Limited, was incorporated as a private limited liability company in 2018.
The principal activity of the Company is focused on the supply of power and innovative clean energy solutions.
GLNG has delivered 40 MW of off-grid power and serves industrial clients with captive power solutions.
GLNG plans to expand into LNG liquefaction, aiming to develop a 200,000 scm/day facility in Abeokuta, Ogun State, with phased capacity growth to 400,000 scm/day.
It is important to note that GLNG and GFL operate in competitive segments of Nigeria’s gas market, facing competition from players such as Powergas, NIPCO Gas, Greenville LNG, Bridport Energy, Axxela, and Tetracore in CNG distribution and broader gas supply services.
Get up to speed
GLNG Funding SPV Plc and its sponsors appear to have built a solid track record in Nigeria’s debt capital market.
According to the GLNG Funding SPV Plc Investor Presentation, the group has successfully executed multiple bond transactions between 2022 and 2025, including:
- A N650 million private company bond in 2022 at a coupon rate of 14%
- A N5 billion 10-year Guaranteed Fixed Rate Series I Bond (due 2033) in 2023 at a coupon rate of 15.2%
- A N12 billion 10-year Guaranteed Fixed Rate Series II Bond (due 2035) in 2025
All these issuances were credit-enhanced by InfraCredit and subscribed to by institutional investors such as pension fund administrators, insurance companies, and asset managers.
What need to know
This Series 4 commercial paper offer is positioned as a short-term funding bridge. targeting up to N7.5 billion under a N30 billion programme with a 364-day tenor.
The paper offers an implied annual yield of 24%, a relatively high return compared with both short-term risky assets and risk-free instruments.
The investment case is anchored on the operating performance of the two co-obligors: Green Fuels Limited (GFL) and Green Liquefied Natural Gas Limited (GLNG), which together underpin the repayment profile of the paper.
- GFL remains the group’s earnings engine. In 2024, revenue from its compressed natural gas business surged by 194% to N24.38 billion from N8.30 billion in 2023, while profit after tax jumped by 431% to N6.18 billion from N1.16 billion.
- GLNG, while smaller, also recorded solid growth. Revenue rose by about 32% to N6.47 billion in 2024 from N4.90 billion in 2023, while profit after tax climbed more than fourfold to N479 million from N88 million.
However, the contrast between profit growth and cash flow is most evident at GLNG. Despite the strong earnings performance, operating cash flow turned negative at about N504 million in 2024, compared with a positive N1.81 billion in 2023.
- The main driver was a sharp build-up in working capital, particularly trade receivables, which expanded significantly as the company financed growth ahead of cash collections.
- Inventories and other working capital items also absorbed cash, while the increase in payables was not sufficient to offset the outflows.
By contrast, GFL generated strong positive operating cash flows, helping to support liquidity at the group level.
Even so, GLNG’s cash strain meant the group leaned more heavily on financing, with higher net cash inflows from financing activities helping to keep year-end cash balances broadly stable.
This dynamic explains why the commercial paper programme is positioned primarily as a working capital support tool.
The bottom line
While both co-obligors are profitable and growing, the key variable for investors to watch is cash conversion, particularly GLNG’s ability to turn rising earnings into cash within the life of the paper.
Working capital discipline, rather than headline profit growth, will be central to how comfortably repayment from operating cash flows is achieved.
On the other hand, the paper is supported by investment-grade short-term ratings from DataPro (A1/A2 for the co-obligors), reflecting the essential nature of the sponsors’ gas and power services and their established customer base.
At a 24% implied yield, it offers an attractive risk-adjusted return for short-term investors.
