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Corporate deals

DEAL: FMDQ lists TSL SPV Series 1 Infrastructure Bond worth N12 billion.

The listing of the bond is the sequel to a host of other corporate securities issued on the FMDQ platform this year.

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FMDQ lists TSL SPV Series 1 Infrastructure Bond worth N12 billion.

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.

READ: InfraCredit guarantees TSL’s issuance of a N12 billion 10-year Series 1 Infrastructure Bonds

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.

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Chidi Emenike is a graduate of economics, a Young African Leadership Initiative Fellow and an Investment Foundations certificate holder. He worked as a graduate Teaching Assistant in the Federal College of Education Kano and is also a trained National Peer Group Educator on Financial Inclusion

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Corporate deals

DEAL: Nigerian fintech API startup Okra raises $3.5million to expand its data infrastructure

The new investment fund will be used to expand Okra’s data infrastructure across Nigeria and execute an imminent pan-African expansion.

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Okra, Nigeria’s fintech API startup announced that it has closed $3.5 million in a seed round.

This funding round was led by U.S.-based Susa Ventures. Other investors include TLcom Capital (the sole investor from its $1 million pre-seed round in 2020); Accenture Ventures; Angel investors like Rob Solomon, Chairman at GoFundMe and a former partner at Accel; Arpan Shah, founding engineer and ex-head of data platforms and data products at Robinhood; and Hongxia Zhong, founding engineer and ex-senior engineering manager at Robinhood.

The API company has raised a total of $4.5 million in two funding rounds.

Founded in 2019 by Fara Ashiru Jituboh and David Peterside, Okra’s API empowers companies and developers to build products with seamless access to inclusive financial data and secure payments.

Okra has also analyzed more than 20 million transactions; last month, it analyzed 27.5% of this figure at over 5.5 million transaction lines.

The company also claims to onboard new clients in 24 hours or less while supporting them through the use of cases specific to their product.

Okra is connected to every bank in Nigeria with several connection methods to choose from. Some companies using Okra’s API include Renmoney, Carbon, Autochek, Access bank and Interswitch.

This new investment fund will be used to expand its data infrastructure across Nigeria and execute an imminent pan-African expansion to Kenya and South Africa.

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What they are saying

Seth Berman, General Partner at Susa, said “We’re thrilled to partner with Okra as they enable developers across the African continent to transform digital financial services. We’re blown away by the quality of Okra’s team, pace of development and the excitement from the customers building on their API.”

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Tom Lounibos, President and Managing Director at Accenture Ventures, said the reason behind the investment stems from partnering with Okra to bring open finance to Africa, the calibre of founders and their technology.

Omobola Johnson, Senior Partner at TLcom Capital, said her firm had been consistently impressed with the quality of the Okra team.

“Fara’s technical depth and expertise, which when combined with the entrepreneurial acumen she and David bring to the company, leaves us confident that they are building Africa’s most stable and robust API infrastructure. TLcom is delighted to continue partnering with Okra.”

Fara Ashiru Jituboh CEO of Okra said “We build the tools that businesses need to achieve full digital transformation and we are excited to be welcoming some highly strategic global investors as we scale our Open Finance-as-a-Service operations. The opportunities to collaborate and grow together are significant and we are now in a strong position to continue to build and scale in the African, and global API space.”

Stanbic 728 x 90

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Corporate deals

Access Bank moves to acquire BancABC Botswana

The Nigerian bank would buy just over 78% of BancABC Botswana for an undisclosed cash amount of about 1.13 times the book value plus a two-year deferred payment.

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Access Bank , #EndSARS: Access Bank Debunks aiding military onslaught against Lekki protesters

According to a memo published today, Access Bank, Nigeria’s largest lender, has agreed to buy a majority stake in African Banking Corporation of Botswana for cash, only a month after buying a South African bank.

Stagflation and dollar shortages in Nigeria have frustrated industries and shrunk the lending sector, prompting Access Bank to extend across the African continent. Atlas Mara said in a statement on Monday that the Nigerian bank would buy just over 78% of BancABC Botswana for an undisclosed cash amount of about 1.13 times the book value plus a two-year deferred payment.

Access Bank now has a presence in ten African countries thanks to the agreement with ABC Holdings, a local subsidiary of Atlas Mara, a London-listed company. It should be completed by the end of the second quarter.

Herbert Wigwe, the Chief Executive Officer of Access Group, told the public that the company is focused on growth. “We remain committed to a focused and deliberate expansion strategy in Africa, which we believe will generate solid, long-term returns,” the bank said.

According to Access Bank, BancABC is Botswana’s fifth-largest bank, with a strong retail loan portfolio and plans to expand into corporate and small-to-medium-sized business lending. Nigerian lenders have been looking for new ways to increase profits in the face of slowing domestic inflation, falling government bond yields, and an increase in restructured loans as a result of the COVID-19 pandemic.

In March, Access Bank paid $60 million for a majority stake in South Africa’s Grobank, making it the first Nigerian bank to enter the country. It has also recently signed agreements in Zambia and Mozambique. Access Bank is restructuring into a holding firm to drive its international growth with more than $16 billion in reserves and an emphasis on corporate and retail banking.

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