InfraCredit, an ‘AAA’ rated Lagos-based credit guarantee institution providing Naira-denominated guarantees, has announced its guarantee of GPC SPV Company Plc’s N20 billion 10-year Series 1 Senior Guaranteed Fixed Rate Infrastructure Bonds Due 2031 (the “GPC Series 1 Bond”) under the NGN50 billion Debt Issuance Programme.

GPC is a first-time issuer in the debt capital market and has leveraged InfraCredit’s guarantee to be accorded an ‘AAA’ long term credit rating on its 10-year GPC Series 1 Bonds by Agusto and Co and DataPro Limited.

This rating reflects a high degree of creditworthiness and the strong quality of the Bonds. The Bonds were oversubscribed by 25.3 per cent from nine (9) institutional investors including the domestic pension funds.

Proceeds will be channelled towards financing the acquisition of additional trucks to sustain the strong growth trajectory of the company in meeting the burgeoning demand from clients across key growth sectors of the Nigerian economy.

In addition, the notice states that part of the proceeds would be used to refinance existing foreign currency-denominated loans, thereby appropriately matching the currency of its revenues to that of its debt obligations.

The success of this financing will provide up to 220 trucks under term contracts that will create 360 direct and indirect jobs.

The Chief Executive Officer (CEO) of GPC Energy and Logistics Limited, Chukwudi Elvis Okonji said in a statement, “This maiden bond transaction is an important milestone for GPC, as it provides the leverage to finance our next transformational growth phase. More importantly, the success of this transaction reinforces our capacity to enhance service delivery to our growing clientele, who play significant roles across different growth sectors of the Nigerian economy.”

According to the CEO, “The COVID-19 pandemic negatively impacted all transport operations, leading to severe disruptions of supply chains and trade flows worldwide particularly developing economies like Nigeria. Investment in transport and integrated supply chain infrastructure is an essential part of the country’s post-pandemic economic recovery and the achievement of the SDGs.

What you should know

GPC Energy and Logistics Limited is a leading, fast-growing transport and logistics services provider. With over a decade of operations, GPC provides transport and logistics services to several multinational companies in Nigeria operating across the FMCG, agriculture and construction sectors covering an average of 2.8 million kilometres monthly. The company operates its fleet under term contracts as it leverages a unique integrated transport and logistics model in delivering best-in-class support to the industry.