GPC Energy and Logistics plans N30 Billion infrastructure bond offer

GPC-SPV Company Plc has announced plans to issue a N30 billion Series 1 Senior Guaranteed Fixed Rate Infrastructure Bond under its N100 billion Bond Issuance Programme.

The issuance marks the return of its parent company, GPC Energy and Logistics Limited, to Nigeria’s debt capital market.

GPC Energy and Logistics is a Nigerian B2B haulage and logistics company founded by former banker Elvis Chukwudi Okonji.

The company commenced operations in 2010 with five trucks and has since expanded to a fleet of more than 900 trucks, serving major corporate clients including Nestlé and Nigerian Breweries.

IRON Capital Markets Limited, the Issuing House to the offer, announced the 10-year programme on Monday, August 24, 2026, in a circular to capital market operators obtained by Nairametrics.

According to the circular, the issue is fully guaranteed by Infrastructure Credit Guarantee Company Plc (InfraCredit), while GPC-SPV is a funding vehicle incorporated by GPC Energy and Logistics Limited, the Sponsor/Co-Obligor, to access the domestic capital markets.

The new programme is twice the size of GPC’s previous N50 billion debt issuance programme, under which it raised N20 billion in 2021.

What the offer circular is saying

The N30 billion Series 1 bond has a 10-year tenor and is backed by an unconditional and irrevocable AAA-rated guarantee from InfraCredit.

• The bond comes with a 24-month principal moratorium, while coupon payments will be made semi-annually.
• Proceeds from the transaction will be used to refinance existing debt and fund the expansion of GPC Energy and Logistics’ truck fleet.
• IRON Capital Markets is leading the transaction as Issuing House, while InfraCredit is providing the credit enhancement through its guarantee.

The actual coupon rate, book-build price guidance, offer opening and closing dates, and exact maturity date have not yet been disclosed. The bond is targeted at Qualified Institutional Investors and High-Net-Worth Investors as defined under SEC rules.

Get up to speed

This is not GPC’s first trip to Nigeria’s debt capital market. In November 2021, GPC-SPV issued a N20 billion 10-year Series 1 Senior Guaranteed Fixed Rate Infrastructure Bond due in 2031 under a N50 billion Debt Issuance Programme.

• The transaction, GPC’s maiden debt capital market issuance, was also fully guaranteed by InfraCredit and was 25.3% oversubscribed, attracting nine institutional investors, including Nigerian pension funds.
• Proceeds were primarily used to refinance existing debt, including foreign-currency obligations, and acquire up to 220 additional trucks.
• The latest transaction therefore represents a significant scale-up of GPC’s capital market funding, with its debt programme doubling from N50 billion to N100 billion and the Series 1 issuance increasing from N20 billion in 2021 to N30 billion in 2026.

The company has since grown into a major B2B haulage and logistics operator with a fleet of more than 900 trucks, serving blue-chip corporate clients including Nestlé and Nigerian Breweries.

More Insights

GPC’s operational expansion has translated into strong revenue growth, although the company continues to operate with a highly leveraged balance sheet.

• Revenue increased from N17.65 billion in 2022 to N42.11 billion in 2024, representing growth of approximately 139% over two years. Revenue rose about 76% year-on-year in 2024 alone.
• Operating profit increased from N3.81 billion in 2022 to N8.96 billion in 2024, while operating margins remained broadly within the 21% to 24% range.
• However, borrowings stood at N27.69 billion in 2024 compared with shareholders’ equity of N4.48 billion, translating to a debt-to-equity ratio of approximately 6.2 times.
• Borrowings declined by about 5.8% in 2024, while shareholders’ equity increased by 16.6%, indicating some improvement in the company’s capital structure.

The proposed N30 billion bond is nevertheless substantial relative to GPC’s financial scale, equivalent to approximately 71% of its 2024 revenue and about 6.7 times shareholders’ equity.

What you should know

InfraCredit’s guarantee is central to the credit profile of the transaction, particularly given GPC’s relatively high leverage.

• The AAA rating attached to the bond reflects the unconditional and irrevocable guarantee provided by InfraCredit.
• InfraCredit’s guarantee model enables infrastructure-related companies to access longer-term naira financing while making their bonds attractive to pension funds, insurers and other institutional investors operating under strict credit-quality requirements.

Nairametrics understands the coupon rate has not yet been disclosed, meaning investors will have to assess the eventual yield against comparable FGN bonds and other highly rated fixed-income securities when the book-build price guidance is released.