InfraCredit guarantees 10-year corporate bond for Viathan Group

InfraCredit has guaranteed the bond transaction for Viathan Group in its first move to successfully connect infrastructure as an asset class to the long-term local currency debt capital markets in Nigeria.

With InfraCredit’s guarantee, through Viathan Funding Plc, a special purpose vehicle established to raise debt capital, successfully accessed the debt capital markets for the first time by issuing a NGN 10.0bn 16.0% Series 1 Senior Guaranteed Fixed Rate Bond Due 2027 (the “Viathan Bonds”) backed by the irrevocable and unconditional guarantee of InfraCredit and accorded ‘AAA’ long term national scale rating by GCR and Agusto & Co.

The net proceeds of the Bonds will be utilized by Viathan Group to expand its generation capacity by 7.5MW, construct a 104,800 scm/day Compressed Natural Gas (CNG) Plant and refinance short term bank debts.

Commenting on the development, the CEO of Viathan Engineering Limited, Mr. Ladi Sanni said, “the success of the bond issuance has significant implication for Viathan’s capacity expansion strategy; with 10-year funding at relatively lower borrowing cost, Viathan Group is better positioned to efficiently execute its capacity expansion plan in captive power generation and increase its diversification into gas processing”.

According to the Chief Executive Officer of InfraCredit, Chinua Azubike,” We are pleased to support Viathan Group’s business expansion programme in the captive power market, by enabling them to raise long term local currency funding with favorable terms.

Speaking on the success of the transaction, the Chairman, InfraCredit, Uche Orji said, “the success of this transaction aligns with the overall objective of InfraCredit’s sponsors, the Nigeria Sovereign Investment Authority and GuarantCo, in establishing InfraCredit to serve as a catalyst for facilitating private investment into infrastructure from pension funds and other long-term private institutional investors in order to support sustained economic growth in Nigeria.”