Craneburg EKSG Motorway Plc (“Craneburg EKSG”) is a special purpose vehicle (SPV) established by the project sponsor – Craneburg Construction Company Limited for the purpose of funding and constructing, as well as operating and maintaining, a ring road of approximately 68km around Ado Ekiti.
Craneburg EKSG Motorway Plc (“Craneburg EKSG”) was incorporated in February 2024 as a special purpose vehicle (SPV) for the purpose of funding and constructing, as well as the operation and maintenance of a ring road of approximately 68km around Ado Ekiti, Ekiti State under a design, build, finance, operate, maintain and transfer (DBFOM) arrangement (the “Project”). Craneburg Construction Company Limited (“Craneburg” or the “Project Sponsor”) was established in April 2013 as a civil and building construction company offering diversified general contracting and design-build services to private clients and public agencies in Nigeria. Since its inception, Craneburg has become one of Nigeria’s largest construction firms, employing over 7,000 people nationwide and undertaking numerous projects across various states.
Project Highlight
The project aims to unlock economic activity along the corridor by supporting the completion of key developments in Ekiti State, such as the Cargo Airport, Agro-Industrial Processing Zone, and Knowledge Zone, which are expected to drive increased traffic and commercial activity within the project’s stretch.
In addition to enabling current and future developments, the Project will significantly improve commuters’ quality of life by reducing travel time and lowering accident rates caused by poor road conditions.
The bond proceeds are deployed to fund the 17.84 km first phase of the 68 km toll road, which aims to decongest traffic and boost regional connectivity and development. This transaction marks the first state-sponsored, annuity-backed corporate infrastructure bond in Nigeria, structured under a Design, Build, Finance, Operate, Maintain & Transfer (DBFOMT) concession with the Ekiti State Government.
32.5
Billion Naira
Transaction Details
With InfraCredit’s guarantee, Craneburg EKSG was able to access the domestic debt capital markets for the first time and raised NGN32.50 billion 20-year Guaranteed Fixed Rate Infrastructure Bonds Due 2045
The Bond was accorded a ‘AAA’ long-term credit rating by Agusto & Co. and GCR, reflecting its high degree of creditworthiness and robust quality. The Bond issue, subscribed by seven (7) domestic pension funds, three (3) commercial banks, two (2) trustees and other institutional investors, offers domestic investors a unique opportunity for diversified, “AAA”-rated assets with strong risk-adjusted returns.
The Bond proceeds will be used to finance the first phase of the project (construction, operation and maintenance of a ring road of approximately 17.84km around Ado Ekiti, Ekiti State). In addition to supporting existing and future developments, the Project is expected to improve the quality of life for commuters by reducing travel time and minimizing accident risks associated with poor road conditions. The Project will create over 250 direct and 50 indirect jobs during construction, with an additional 31 jobs expected, post-construction. It also supports the United Nations Sustainable Development Goals: 1, 2, 5, 8, 9, 10, 11, and 12.
|
Issuer |
Craneburg EKSG Motorway PLC |
|
Infrastructure Activity |
Transportation (Toll Road) |
|
Tenor |
20 Years |
|
Coupon |
22% |
|
Bond Issue Rating |
AAA |
|
Issue Size |
NGN 32.5 Billion |
|
Number Of Subscribers |
13 |
|
Issue Date |
April 2025 |
Investor Distribution
Development Impact
