Aluko & Oyebode Advised Ekiti State Government And InfraCredit On Nigeria’s First Corporate Infrastructure bond For Sub-National PPP project
Aluko & Oyebode advised Ekiti State Government and InfraCredit on Nigeria’s first corporate infrastructure bond for sub-national PPP project
Aluko & Oyebode advised the Ekiti State Government and Infrastructure Credit Guarantee Company Limited (InfraCredit) on the landmark concession granted to Craneburg EKSG Motorway Company Plc for the development of a 17.85 km expressway in Ado Ekiti, Ekiti State. The project was structured as a 20-year Annuity Public-Private Partnership (PPP) under a Design-Build-Finance-Operate-Maintain-Transfer model.
In connection with the financing of the project, the firm acted as Solicitor to the Issue for the successful issuance of a ₦32.5 billion, 20-year, 22% Fixed Rate Senior Guaranteed Infrastructure Bond due 2045 by Craneburg EKSG Motorway Company Plc, a special purpose vehicle established by Craneburg Construction Company Limited. The bond is guaranteed by InfraCredit, and marks the first successful corporate infrastructure bond issuance for a sub-national PPP project in Nigeria.
Aluko & Oyebode provided comprehensive legal and regulatory support throughout the transaction lifecycle, including structuring and drafting the concession agreement, direct agreements, independent engineer’s agreement, lenders’ technical adviser agreement, and bond issuance documentation.
This pioneering transaction reflects the potential of PPPs and capital market instruments in addressing Nigeria's infrastructure challenges while leveraging private capital to reduce fiscal pressure on sub-national governments. The Ado-Ekiti Ring Road, part of the Ado-Ekiti Transportation Master Plan, is expected to boost urban mobility, regional connectivity, and economic growth in Ekiti State.
The team was led by Oludare Senbore (Partner) and Ayodeji Oyetunde (Partner), with support from Onyinyechi Iwuoha (Senior Associate), Kareemat Ijaiya (Senior Associate), Ofure Odia (Associate), Stephen Ezekeoma (Associate), Jessica Anusionwu (Associate), and Blessing Egunjobi (Associate).
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