FMDQ Securities Exchange Limited (FMDQ Exchange) has announced the successful listing of Transport Services Limited (TSL) SPV Series 1 Guaranteed Fixed Rate Infrastructure Bond, worth N12 billion.
This is according to a disclosure by FMDQ which reads: ‘’ FMDQ Securities Exchange Limited is pleased to announce the approval for the listing of the ₦12.00bn Series 1 TSL SPV PLC Guaranteed Fixed Rate Infrastructure Bond under its ₦50.00bn Bond Issuance Programme on its platform.’’
The listing of the bond is sequel to a host of other corporate securities issued on the FMDQ platform this year, deepening efforts in ensuring that stakeholders gain access to a reliable and credible source of raising funds to meet short and long-term needs.
It is pertinent to note that the deal is part of a Special Purpose Vehicle (SPV) designed to raise a total of N50 billion through bond issuance and leverage of other debt securities for a specified period of time. The special infrastructure bond comes with a tenor of 10 years and a coupon rate of 10%.
It is expected that the proceeds of the bond will assist Transport Service Limited in refinancing existing short-term debt, funding its reserve accounts, and executing capital projects.
What they are saying
Commenting on the recent development, the Managing Director/Chief Executive Officer of TSL SPV PLC, Mr. Ayodeji Wright, said: “TSL’s Senior Guaranteed Infrastructure Bonds were conceived a few years ago and I am profoundly grateful to the entirety of the Transaction Parties, TSL Bond Investors, InfraCredit and the Regulators, who have made this a reality today. TSL remains committed to delivering its vision of providing bespoke supply chain and logistics solutions within Nigeria, and to sub-Saharan Africa. The unprecedented issuance of the N12.00 billion, 10% fixed-rate, 10-year tenor TSL Bonds is a first in Nigeria’s transportation and logistics sector, which will undoubtedly be the springboard to provide the financial reinforcement to our business strategy and strong operating model. Its proceeds will in part be used to stimulate an atmosphere for profitable growth for the business and in part for the improvement of the existing business.”
What you should know
- Transport Services Limited is a foremost Nigerian transport and logistics company founded in 2001. It serves clients in various sectors such as Oil and Gas, FMCG etc.
- Stanbic IBTC Capital Limited acted as the lead issuing house for the recent deal, while ARM Securities Limited acted as the joint issuing house/book runner.
- The Special Infrastructure Bond comes with a face value of N1000.