The Nigerian Exchange Limited (NGX) has recorded a surge in capital market activity with the listing of the N4.64 billion infrastructure bond issued by Elektron Finance SPV Plc.
The 22.00% Series 1 Senior Guaranteed Fixed Rate Infrastructure Bond, listed on Monday, November 3, 2025, represents the first tranche under its N200 billion Bond Issuance Programme.
The 15-year bond, maturing in July 2040, carries a fixed coupon rate of 22% per annum, making it one of the most attractive long-term debt instruments currently traded on the NGX.
The issue was structured as a senior guaranteed bond, backed by the Infrastructure Credit Guarantee Company Plc (InfraCredit) and co-obligated by Victoria Island Power Limited.
The strong credit enhancement from InfraCredit has positioned the instrument as a low-risk, high-yield asset for institutional investors seeking stable returns amid volatile market conditions.
According to the NGX, the bonds listed at par value of N1,000 per unit will make semi-annual coupon payments on January 7 and July 7, commencing in July 2025.
Amortised redemption payments will begin 36 months after issuance, continuing until maturity in July 2040, ensuring disciplined repayment throughout the tenor.
Strong institutional participation
The bond attracted strong institutional participation, reflecting renewed investor confidence in Nigeria’s growing infrastructure-backed debt market.
- Vetiva Advisory Services Limited acted as the lead issuing house, supported by Anchoria Advisory Services, ARM Capital, CardinalStone Partners, FBNQuest Merchant Bank, and Iron Global Markets Limited as joint issuing houses.
- Anchoria Securities Limited, Vetiva Securities Limited, and ARM Securities Limited served as joint stockbrokers, while Custodian Trustees Limited and Veritas Registrars Limited acted as the bond trustee and registrar, respectively.
Market analysts note that the listing of Elektron Finance’s Series 1 bond underscores the increasing importance of long-tenor corporate instruments in bridging Nigeria’s infrastructure financing gap.
With a robust 22% annual yield and InfraCredit’s guarantee, the bond provides a safe and rewarding investment alternative for pension funds, insurance firms, and asset managers.
What you should know
- InfraCredit is a specialised credit enhancement institution backed by the Nigeria Sovereign Investment Authority (NSIA) and other international development finance partners.
- It provides credit guarantees to infrastructure-related debt instruments. Its core mandate is to make long-term, local currency infrastructure financing more attractive to institutional investors by de-risking such instruments.
- Thus, the InfraCredit guarantee transforms the Elektron Finance bond into a low-risk, investment-grade instrument, while the co-obligation by Victoria Island Power provides operational and financial assurance.
- Together, they significantly reduce default risk, enhance investor confidence, and improve the bond’s marketability — making it a model transaction for sustainable infrastructure financing in Nigeria.
