FMDQ Exchange admits TSL SPV’s N12bn infrastructure bond

FMDQ Securities Exchange Limited has approved the listing of the TSL SPV Plc N12.00 billion Series 1 Guaranteed Fixed Rate Infrastructure Bond under its N50.00 billion Bond Issuance Programme on the Exchange’s platform.

The Exchange said on Wednesday that the listing of the bond joined a host of other corporate securities issued on its platform this year, actively tapping the debt capital market as a viable avenue to raise funds to meet working capital requirements.

In its role as a market organiser for the Nigerian debt capital market, FMDQ Holdings Plc has sustained efforts in ensuring that stakeholders have uninterrupted access to a credible and robust platform which allows for capital raising, risk management and transfer of value, through its wholly owned Exchange, Central Counterparty and Depository, according to a statement.

The Exchange noted that Transport Services Limited had set up a special purpose vehicle to raise finance through the listing of debt securities which would be used to boost the issuer’s business expansion exercise and to restructure the company’s debts over the specified period.

The Managing Director/Chief Executive Officer, TSL SPV, Mr Ayodeji Wright, was quoted as saying in a statement, “TSL’s Senior Guaranteed Infrastructure Bonds was 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.”

According to him, the issuance of the N12.00 billion, 10 percent fixed rate, 10-year tenor TSL Bonds is a first in Nigeria’s transportation and logistics sector, and will be the springboard to provide the financial reinforcement to the company’s 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,” Wright said.

The Head, Debt Capital Markets, Stanbic IBTC Capital Limited, Mr Tokunbo Aturamu, expressed his delight at the successful issuance and listing of the TSL SPV’s N50 billion Series 1 guaranteed infrastructure bonds.

He said, “Transport Services Limited, the sponsors of TSL SPV Plc, is a key player in the crucial logistics and distribution sector of the Nigerian economy and thanked them for participating in the bond issue.”

Aturamu thanked the board and management of Transport Services Limited for the opportunity given to Stanbic IBTC Capital to act as the lead issuing house to the bond issue.

“Despite challenges brought by the recent COVID-19 pandemic, this achievement demonstrates InfraCredit’s continuing support for inclusive access to long-term local currency finance for infrastructure development, and the deepening of the domestic debt capital markets with good quality asset classes for domestic investors,” the MD/CEO, Infrastructure Credit Guarantee Company Limited, Mr Chinua Azubike, said.

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