Craneburg raises ₦32.50 billion in senior guaranteed bond issuance

Craneburg EKSG Motorway Company PLC has successfully raised  Craneburg EKSG Motorway Company PLC has successfully raised ₦32.50 billion through a 20-year senior guaranteed fixed-rate infrastructure bond due in 2045, marking a significant milestone in the financing of the Ado Ekiti Ring Road project. The bond issuance, which was fully subscribed by seven domestic pension funds and other institutional investors, will fund the first phase of the ambitious infrastructure initiative—comprising the construction, operation, and maintenance of approximately 17.84 kilometres of a 68km ring road around Ado Ekiti in Ekiti State.

____________________________

Designed for both buyside and sellside M&A, DealCentre AI M&A deal management software offers greater visibility for deal coordination and management. Learn how to use 𝗗𝗲𝗮𝗹 𝗖𝗲𝗻𝘁𝗿𝗲 AI™ in Nigeria mlslegal.co/ssc-intralinks

____________________________

Craneburg EKSG was established as a special purpose concession company by Craneburg Construction Company Limited to execute the project under a design, build, finance, operate, maintain, and transfer (DBFOM) model over a 20-year concession period. The project is set to bolster economic development in the region and support both current and future infrastructure needs.

The bond enjoys the backing of InfraCredit, a ‘AAA’-rated specialized infrastructure credit guarantee institution, which provided the credit guarantee that enhanced the instrument’s attractiveness to domestic investors. With the InfraCredit guarantee, the bond offered investors access to a high-quality, diversified asset with robust risk-adjusted returns. The proceeds will also be used to procure and deploy tolling infrastructure and advanced operational technology systems, supporting the delivery of a modern, efficient road network aimed at improving mobility, reducing travel time, and enhancing commuter safety

The project’s development was supported from its inception by KfW Development Bank, which partnered with InfraCredit through a Technical Assistance Financing Agreement. Under the agreement, InfraCredit assembled a multidisciplinary team of project development experts in collaboration with the Ekiti State Development and Investment Promotion Agency (EKDIPA) to deliver advisory services—ranging from legal and environmental assessments to technical and commercial feasibility studies—to ensure the project’s viability and successful financial close.

Anchoria Advisory Services Limited acted as the Lead Issuing House and Bookrunner for the bond issuance, while Coronation Merchant Bank and Greenwich Merchant Bank served as Joint Issuing Houses and Bookrunners, facilitating the successful transaction. through a 20-year senior guaranteed fixed-rate infrastructure bond due in 2045, marking a significant milestone in the financing of the Ado Ekiti Ring Road project. The bond issuance, which was fully subscribed by seven domestic pension funds and other institutional investors, will fund the first phase of the ambitious infrastructure initiative—comprising the construction, operation, and maintenance of approximately 17.84 kilometres of a 68km ring road around Ado Ekiti in Ekiti State.

Craneburg EKSG was established as a special purpose concession company by Craneburg Construction Company Limited to execute the project under a design, build, finance, operate, maintain, and transfer (DBFOM) model over a 20-year concession period. The project is set to bolster economic development in the region and support both current and future infrastructure needs.

The bond enjoys the backing of InfraCredit, a ‘AAA’-rated specialized infrastructure credit guarantee institution, which provided the credit guarantee that enhanced the instrument’s attractiveness to domestic investors. With the InfraCredit guarantee, the bond offered investors access to a high-quality, diversified asset with robust risk-adjusted returns. The proceeds will also be used to procure and deploy tolling infrastructure and advanced operational technology systems, supporting the delivery of a modern, efficient road network aimed at improving mobility, reducing travel time, and enhancing commuter safety

The project’s development was supported from its inception by KfW Development Bank, which partnered with InfraCredit through a Technical Assistance Financing Agreement. Under the agreement, InfraCredit assembled a multidisciplinary team of project development experts in collaboration with the Ekiti State Development and Investment Promotion Agency (EKDIPA) to deliver advisory services—ranging from legal and environmental assessments to technical and commercial feasibility studies—to ensure the project’s viability and successful financial close.

Anchoria Advisory Services Limited acted as the Lead Issuing House and Bookrunner for the bond issuance, while Coronation Merchant Bank and Greenwich Merchant Bank served as Joint Issuing Houses and Bookrunners, facilitating the successful transaction.