TSL Plc’s N12bn series 1 guaranteed fixed-rate bond admitted on the FMDQ Securities Exchange

         Proceeds will be used to stimulate an atmosphere for profitable growth

Charles Abuede

FMDQ securities Exchange Limited has approved the listing of the Transport Services Limited (TSL) special purpose vehicle (SPV) Plc’s N12 billion Series 1 guaranteed fixed rate infrastructure bond under its N50 billion issuance programme which was done through FMDQ’s Board Listings on Wednesday. The bond listing will see TSL join other corporate securities issued on the FMDQ platform this year as the transport company seeks to actively tap into the debt capital market as a viable avenue to raise funds to meet working capital requirements.

The company in a statement by Ayodeji Wright, who is the Managing Director and Chief executive Officer of TSL Plc, he said:  “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.

“TSL remains committed to delivering its vision of providing bespoke supply chain and logistics solutions within Nigeria, and sub-Saharan Africa. The unprecedented issuance of the N12.00 billion, 10 per cent fixed-rate, 10-year tenor TSL Bonds is a first in Nigeria’s transportation and logistics sector, which will undoubtedly be the springboard to provide the financial reinforcement to our 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.”

The CEO further revealed that the bond issuance would be used to bolster the business expansion exercise of the firm and also to restructure the firm’s debts over the specified 10 year period. “TSL is a leading provider of customised logistics and transportation solutions in Nigeria with over 19-years history has set up a special purpose vehicle (SPV) to raise finance through the listing of debt securities on the FMDQ platform as one of the highly experienced and innovative transport and logistics provider in the maintenance of safety and journey administration.”

Also present at the event was Tokunbo Aturamu, the Head, Debt Capital Markets at Stanbic IBTC Capital Limited, in his remarks, noted that “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 also expressed delight on the successful issuance and listing of the bond and also thanked the Board and management of TSL for the opportunity afforded Stanbic IBTC Capital to act as the leading issuing house to TSL SPV Plc’s landmark Bond issue programme.

Furthermore, Chinua Azubike, the Managing Director/Chief Executive Officer, Infrastructure Credit Guarantee Company Limited, in his remarks at the landmark event for TSL Plc noted that “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 a good quality asset classes for domestic investors.

“As we expand and diversify our guarantee portfolio to the transportation sector and given the importance of transport infrastructure to Nigeria’s economic recovery, we believe that our role remains vital in enabling businesses to deliver more essential infrastructure that can drive a clear and sustainable development impact on economic activities as well as improve the livelihoods of Nigerians,” he stated.