Craneburg EKSG Motorway Company has launched an infrastructure bond guaranteed by InfraCredit, with a 20-year tenor.
This announcement was communicated in a notification to Nairametrics, stating that the bond allows investors to participate in infrastructure projects with dependable revenue streams.
Specifically, the bond will finance a Toll Road Project designed to improve connectivity and tackle Nigeria’s infrastructure deficit.
According to the Craneburg, “By mobilizing long-term capital, the project seeks to enhance essential road infrastructure, stimulate economic growth, and elevate the overall quality of life.”
With a nominal value of N32.5 billion, the bond is targeted at High-Net-Worth Individuals and Qualified Institutional Investors, with the offer opening on Tuesday, March 4, 2025, and closing on Friday, March 14, 2025.
It offers a coupon rate between 19.5% and 20.5%, with a minimum subscription of N5,000,000, in increments of N1,000,000.
What to know
The bond, with a nominal value of N32.5 billion, has a net issuance cost of N663.32 million (2.04% of the total).
- Of the total, N28.37 billion (87.28%) will be earmarked for capital expenditures, N3.37 billion (10.37%) for debt reserve requirements, and N100 million (0.31%) for project preparation costs.
- The bond is guaranteed by InfraCredit, and has a tenor of 20 years.
- Iron Global Markets Limited is the issuing house.
According to Craneburg, the bond backs an AAA rating from Agusto & GCR and has received approval from the Securities and Exchange Commission (SEC) for regulatory compliance.
‘’The bond also complies with PenCom regulations, making it eligible for investment by Pension Fund Administrators (PFAs).’’
About the company
- Craneburg Construction Company is a private construction group in Nigeria that provides services across various sectors, it was founded in 2013.
- With a workforce of over 7,000, the company undertakes projects in multiple industries, emphasizing a client-focused approach based on its experience with Tier 1 and large corporations.
