TSL SPV Plc’s N5 Billion Infrastructure Bond Listing on the NGX: A Detailed Overview
TSL SPV Plc, a special purpose vehicle established to facilitate infrastructure financing, has successfully listed its N5 billion Series 1 Senior Guaranteed Fixed Rate Infrastructure Bond on the Nigerian Exchange Limited (NGX). This landmark listing marks a significant step in the company’s efforts to raise capital for critical infrastructure and logistics projects within the Transport Services Limited (TSL) group and its co-obligors. The bond, which has a maturity date of June 2035, carries a coupon rate of 21% per annum and is guaranteed by Infrastructure Credit Guarantee Company Limited (InfraCredit), enhancing its creditworthiness and attracting investors. The proceeds from this bond issuance will play a pivotal role in advancing TSL’s strategic objectives in the infrastructure and logistics sectors.
The Series 1 bond offering, part of TSL SPV Plc’s broader N50 billion bond issuance program, showcases the company’s commitment to leveraging the capital markets for long-term growth. By issuing bonds, TSL SPV Plc gains access to a substantial pool of capital, enabling it to finance large-scale projects that would otherwise be challenging to fund through traditional lending channels. The NGX listing provides investors with an opportunity to participate in infrastructure development and earn attractive returns, aligning with the growing demand for infrastructure-focused investment instruments.
With a par value of N1,000 per unit, the bond offering comprises five million units, providing investors with flexibility in their investment allocation. The 21% coupon rate, paid semi-annually, offers a competitive yield compared to other fixed-income instruments in the market. The first coupon payment is scheduled for June 30, 2025, marking the beginning of a regular income stream for bondholders. The bond’s redemption structure, characterized by equal semi-annual debt service payments commencing 48 months after the issue date, ensures a predictable and manageable repayment schedule for TSL SPV Plc while providing consistent returns to investors.
The Infrastructure Credit Guarantee Company Limited’s (InfraCredit) guarantee backing the bond significantly strengthens its credit profile. InfraCredit’s involvement mitigates the risk associated with the investment, making it more appealing to institutional and individual investors seeking secure, long-term investment opportunities. This guarantee plays a crucial role in attracting investor confidence, reducing borrowing costs for TSL SPV Plc, and facilitating the mobilization of private capital for vital infrastructure development.
The listing of the bond on the NGX under the security code TSL2035S1 and symbolized as 21.00% TSL GTEED JUN 2035, provides transparency and liquidity to investors. The NGX platform ensures efficient trading and price discovery, enhancing the accessibility of the bond to a wider range of investors. The standardized format for the bond’s identification facilitates easy tracking and management within investment portfolios.
The successful listing of this N5 billion bond signifies a strong vote of confidence in TSL SPV Plc’s vision and its strategic role in advancing Nigeria’s infrastructure landscape. The capital raised will contribute to the development of crucial projects that drive economic growth, create jobs, and improve the quality of life for Nigerians. Furthermore, this bond issuance underscores the increasing sophistication and dynamism of the Nigerian capital markets, highlighting their capacity to support large-scale infrastructure financing initiatives.
