PIDG-backed, specialised infrastructure credit guarantee company Infracredit says that it has has guaranteed Transport Services Limited’s (TSL) N12 billion 10-Year Series 1 Senior Guaranteed Fixed Rate Infrastructure Bonds Due 2030 under a N50 billion Debt Issuance Programme.
The Series 1 bond was oversubscribed by 73.2 per cent with firm commitments from 18 institutional investors including 11 domestic pension funds.
The transaction was the first 10-year bond issuance by any company in the transportation and logistics sector. The bond proceeds will be used to refinance its short-term loans to matching long term fixed rate debt that will support TSL’s consistent business growth and expansion plans.
TSL’s Chief Executive Officer Ayodeji Wright, said: “The TSL Bond was conceived few years ago and I am profoundly grateful to the entire Project 4 Transaction Parties, TSL bond investors and the regulators, who have made this become a reality today. The successful issuance of the bond is attributable to our relentless and collaborative efforts, underscored by our track record of excellence in 19 years of existence as an indigenous logistics and evolving mobility company.
“Today, TSL remains committed to delivering its vision of providing bespoke supply chain and logistics solutions within Nigeria, and to sub-Saharan Africa. The TSL bonds will undoubtedly be the springboard to provide the financial reinforcement to our business strategy, strong operating model and will in turn stimulate an atmosphere for a profitable growth over the next decade.
Infracredit’s chief executive Chinua Azubike, said: “Despite challenges brought by the recent COVID-19 pandemic, this achievement demonstrates InfraCredit’s continuing support for inclusive access to long term local currency finance for infrastructure development, and the deepening of the domestic debt capital markets with good quality asset classes for domestic investors.
“TSL, over its 19-year history, has built a strong pedigree as a highly experienced and innovative transport and logistics service provider particularly in safety, maintenance, and journey administration. “As we expand and diversify our guarantee portfolio to the transportation sector and given the importance of transport infrastructure to Nigeria’s economic recovery, we believe that our role remains vital in enabling businesses to deliver more essential infrastructure that can drive a clear and sustainable development impact on economic activities as well as improve the livelihoods of Nigerians.”
TSL, co-founded by Ayodeji Wright and Wale Fatoki, is a leading fully integrated transport and logistics company that delivers value added logistics and distribution services to a wide range of corporate and retail clientele in industries such as agro-processing, fast moving consumer goods, oil and gas, cement, amongst others under fixed term contracts.