InfraCredit guarantees Craneburg EKSG’s N32.50b 20-year infrastructure bond

InfraCredit, an ‘AAA’-rated specialised infrastructure credit guarantee institution, has announced its guarantee of Craneburg EKSG Motorway Company PLC’s N32.50 billion 20-Year Senior Guaranteed Fixed Rate Infrastructure Bonds Due 2045. Craneburg EKSG is a special purpose concession company established by the project promoter – Craneburg Construction Company Limited for the purpose of funding and constructing, as […]

InfraCredit, an ‘AAA’-rated specialised infrastructure credit guarantee institution, has announced its guarantee of Craneburg EKSG Motorway Company PLC’s N32.50 billion 20-Year Senior Guaranteed Fixed Rate Infrastructure Bonds Due 2045.

Craneburg EKSG is a special purpose concession company established by the project promoter – Craneburg Construction Company Limited for the purpose of funding and constructing, as well as the operation and maintenance of the 68km Ring Road in Ado Ekiti, Ekiti State, under a design, build, finance, operate, and maintain (DBFOM) concession 20-year arrangement.

A statement yesterday indicated that the project, which forms part of the Ado-Ekiti Transportation Master Plan, is aimed at improving connectivity, easing urban mobility, and boosting economic development within Ekiti State.

Furthermore, the Ekiti State government intends to unlock economic activities within the project corridor with the completion of key developments (e.g. Cargo Airport, the Agro-Industrial Processing Zone and Knowledge Zone, among others) that will induce additional traffic along the project corridor, improving the road usage.

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InfraCredit’s Annuity PPP Guarantee Product enables the sustainable financing of new infrastructure across sub-nationals in Nigeria, using technical assistance and project preparation to accelerate state supported and private sector led development of sustainable revenue-generating infrastructure projects, under a DBFOM arrangement with the private sector.

Chairman, Craneburg Construction Company, Mr Femi Edun, stated: “We are honoured by the trust placed in us by the Ekiti State government to deliver this transformative project under the innovative InfraCredit Annuity PPP Product. The Product framework has been instrumental in mobilising long-term domestic capital that enables us to sustainably finance and execute this much-needed infrastructure project. As a company recognised for quality and timely delivery, we are committed to ensuring that this project sets a new benchmark for infrastructure development at the sub-national level.”

The Chief Executive Officer of InfraCredit, Mr Chinua Azubike, said, “Public-Private Partnerships (PPPs) leverage private sector expertise and capital to finance and manage revenue generating infrastructure projects, while domestic capital markets play a crucial role in providing long term financing for these partnerships, we are excited to have supported an innovative financing model under InfraCredit’s Annuity PPP Guarantee Product to unlock 20-year financing from domestic institutional investors for the concession company sponsored by Craneburg Construction under a Design, Build, Finance, Operate, and Maintain (DBFOM) model, leveraging technical assistance and project preparation to accelerate delivery and scale. The Ado-Ekiti Toll Road Project serves as a blueprint for how effective risk allocation between government and private sector can attract long-term private investment that creates jobs and drives inclusive growth.”