Primero Transport Services Raises N16.5bn via Bond
The formal signing for the first series of the N100 billion Bus Rapid Transit Systems (BRTS) Securitisation transaction sponsored by Primero Transport Services Limited, took place recently in Lagos, as the company raise N16.5 billion via a seven-year bond at a fixed rate of 17 per cent per annum.
The bonds were solely backed by BRT receivables and had an investment grade rating from all three rating agencies.
The Board Chairman, Primero Transport Services Limited, Hon. Ademola Seriki, while speaking at the signing ceremony, highlighted the significance of the Series 1 Bonds in what he considered to be the best solution designed by DLM Advisory Partners in being able to connect long term capital to the urban transportation sector using securitisation technology.
He further emphasised the commitment of Primero in ensuring that the proceeds of the bond issue are judiciously utilised; stating that, “as a company we do not take lightly the confidence that our investors, the Security and Exchange Commission (SEC), DLM, other Issuing Houses and all other parties in the transaction have shown us. We shall not let them down and will do all it takes to maintain that confidence.”
The Managing Director of Primero, Mr. Fola Tinubu, in corroborating the Chairman’s statement said the bond proceeds would be utilised to meet Primero’s working capital requirements, which would significantly improve the company’s daily operations to ensure a lot more buses can be put on the corridor to ease the suffering of Lagosians.
Also speaking at the event, the Executive Director of DLM Advisory Partners, Mr. Kennedy Ighodaro, reiterated the company’s commitment to developing the Nigerian capital markets by introducing bespoke financing products for its clients: He said: “this transaction represents another securitisation solution that DLM has come to be known for in the domestic capital market. By this transaction we have successfully proven we can connect the urban mass transit system of Lagos State to the Debt Capital Markets.
“For sure, this sort of innovative financing solutions has come to stay.”
Primero Transport Service Limited is Nigeria’s largest private intra-city transport company, with a current fleet of 434 buses. Other co-issuing houses to the transaction were GTL and SCM Limited.