InfraCredit is a triple-A credit guarantee institution that has given Transport Services Limited a guarantee of N12 billion as part of a 10-Year Series 1, Senior Guaranteed Fixed Rate Infrastructure Bond that is due by 2030 as part of the N50 billion Debt Issuance Programme.
Transport Services Limited is a fully integrated transport and logistics firm delivering value-added logistics and distribution services to corporate and retail clients in various industries. TSL was founded by Wale Fatoki and Ayodeji Wright. Industrie covered are in FCMG, oil, gas, cement, and other fixed-term contracts. The company runs a fleet of 840 vehicles across 40 approved interstate routes through multiple areas across Nigeria.
Through InfraCredit’s guarantee scheme, the Series 1 Bonds were given a ‘AAA’ long-term credit rating by DataPro Limited and Agusto and Co. – reflecting a high level of creditworthiness and strong credit quality.
The Series 1 Bonds received a 73.2 percent oversubscription with firm commitments from the 18 institutional investors that include 11 domestic pension funds. This is the first 10 year-bond issuance in the transport and logistics sector.
Proceeds of the bonds will be channeled into refinancing short term loans that match long-term fixed-rate debt to support loans that sustainably support TSL’s consistency in business growth and plans for expansion.
Ayodeji Wright, the CEO of TSL was delighted in the TSL bond that has now become a reality. The bond’s successful issuance is attributed to relentless and collaborative efforts driven by a 19-year track record of excellence as an indigenous logistics and mobility company.
Chinua Azubike, the CEO of InfraCredit pointed out InfraCredit’s support for various initiatives such as access to long term currency finance and the deepening of domestic capital markets. TSL has a 19-year-old history that leverages the experience and expertise in the transport and logistics sector.