Craneburg EKSG Motorway Company Plc, a prominent player in Nigeria’s infrastructure development sector, successfully launched and listed its N32.5 billion 20-year infrastructure bond on the Nigerian Exchange Limited (NGX). This significant financial instrument, carrying a fixed annual coupon rate of 22%, represents a substantial investment in the nation’s transportation network and underscores the company’s commitment to long-term infrastructure projects. The bond’s listing on the NGX provides increased liquidity and transparency, allowing investors to participate in the growth and development of critical infrastructure assets. This move also strengthens the Nigerian capital market by offering a new investment avenue for both institutional and individual investors seeking stable, long-term returns.
The bond, officially designated as 22.00% CEMC GTEED APR 2045 and trading under the symbol CEMC2045S1, was issued at a par value of N1,000 per unit, with a total of 32.5 million units listed. The issuance period spanned from March 4, 2025, to April 7, 2025, with the official issue date set on April 23, 2025. Maturing in April 2045, this 20-year bond offers investors a predictable income stream through its fixed 22% annual coupon rate, paid semi-annually on April 23 and October 23 each year. The principal repayment is structured on an amortized basis following an initial moratorium period, ensuring a steady reduction of the outstanding debt through regular semi-annual payments until the maturity date. This structured repayment plan offers investors greater certainty and minimizes the risk associated with a large balloon payment at maturity.
To enhance investor confidence and mitigate potential risks, the bond is guaranteed by the Infrastructure Credit Guarantee Company Limited (InfraCredit). InfraCredit’s backing provides an added layer of security, assuring investors of timely interest payments and principal repayment. This guarantee is particularly crucial for infrastructure projects, which often involve long gestation periods and complex execution challenges. By securing InfraCredit’s guarantee, Craneburg EKSG Motorway Company Plc has strengthened the bond’s creditworthiness and attracted a wider range of investors, including those seeking lower-risk infrastructure investments. This partnership underscores the importance of credit enhancement mechanisms in facilitating infrastructure financing and fostering investor participation in such projects.
The successful issuance and listing of the bond were facilitated by a consortium of reputable financial institutions. Anchoria Advisory Limited played a pivotal role as the lead issuing house, orchestrating the complex process of structuring, marketing, and distributing the bond. Coronation Merchant Bank, Greenwich Merchant Bank, and Iron Global Markets Limited acted as joint issuing houses, providing their expertise and networks to ensure a broad reach within the investor community. Anchoria Investment and Securities Limited and CardinalStone Securities Limited further supported the distribution efforts as stockbrokers, connecting the bond with potential investors. The involvement of these prominent institutions reflects the significance of the bond issuance and the confidence they place in Craneburg EKSG Motorway Company Plc’s ability to deliver on its infrastructure commitments.
To ensure proper management and oversight of the bond proceeds and investor interests, FBNQuest Trustees Limited and CardinalStone Registrars Limited were appointed as trustees and registrars, respectively. FBNQuest Trustees Limited, as trustee, acts as the protector of bondholders’ rights, ensuring that the bond covenants are adhered to and that the funds are utilized for their intended purpose. CardinalStone Registrars Limited, as registrar, maintains accurate records of bondholders and facilitates the efficient distribution of interest payments and principal repayments. The selection of these reputable institutions reinforces the commitment to transparency and accountability throughout the bond’s lifecycle. Their involvement safeguards investor interests and fosters trust in the management of the bond issuance.
The successful listing of this N32.5 billion infrastructure bond marks a significant milestone for Craneburg EKSG Motorway Company Plc and contributes to the overall development of Nigeria’s infrastructure landscape. This achievement highlights the growing investor confidence in the country’s infrastructure sector and the potential of the capital market to mobilize funds for critical infrastructure projects. The bond proceeds will likely be deployed towards the development and expansion of motorway projects, improving connectivity, and facilitating economic growth across the country. By accessing the capital market, Craneburg EKSG Motorway Company Plc demonstrates the viability of private sector participation in infrastructure development, paving the way for future investments in this crucial sector.
