Craneburg EKSG Motorway Company, a Nigerian infrastructure firm, has introduced a 20-year, N32.5 billion ($32.5 billion) infrastructure bond to finance toll road projects aimed at addressing the country’s chronic connectivity gaps. Backed by InfraCredit and carrying an AAA rating from Agusto & GCR, the bond targets high-net-worth individuals and institutional investors, offering a coupon rate of 19.5% to 20.5%. The issuance, which opened March 4 and closes March 14, underscores Nigeria’s push to mobilize private capital for public works amid a persistent infrastructure deficit.
The bond’s proceeds will primarily fund capital expenditures (N28.37 billion, or 87.28%), with additional allocations for debt reserves (N3.37 billion, 10.37%) and project preparation (N100 million, 0.31%). Net issuance costs total N663.32 million, or 2.04% of the offering. Iron Global Markets Limited serves as the issuing house, and the Securities and Exchange Commission (SEC) has granted regulatory approval, ensuring compliance with local standards. The bond also meets Pension Fund Administrators’ (PenCom) investment guidelines, broadening its appeal to Nigeria’s pension sector.
Craneburg, a private construction group founded in 2016 by Chizoba Wigwe, positions the bond as a catalyst for economic growth. “By mobilizing long-term capital, the project seeks to enhance essential road infrastructure, stimulate economic activity, and elevate quality of life,” the company said in a statement. With a workforce exceeding 7,000, Craneburg has built a reputation for client-focused projects across multiple industries, often partnering with Tier 1 corporations.
The toll road initiative aligns with broader efforts to improve Nigeria’s transportation network, a critical driver of commerce in a country where road taxes remain a significant revenue source—evidenced by recent data ranking the top 10 states for road tax collections in 2023. Yet, the project’s scale has heightened oversight demands. Nigeria’s National Assembly (NASS) has emphasized that it may have to diligently oversee the entire process through its Committee on Works, citing the need for transparency in such large-scale financing. The Committee on Works will in its oversight of the project enforce accountability via quarterly audits and public hearings, requirements Craneburg has pledged to meet to ensure funds are deployed effectively and toll revenues benefit the broader population.
Investors can enter the offering with a minimum subscription of N5 million, in increments of N1 million. The bond’s dependable revenue stream, tied to toll collections, offers a rare opportunity in Nigeria’s nascent infrastructure financing market. Still, its success may hinge on Craneburg’s ability to satisfy NASS’s rigorous oversight and deliver tangible results amid public expectations for improved roads.
Key Details:
Nominal Value: N32.5 billion
Tenor: 20 years
Coupon Rate: 19.5%–20.5%
Offer Period: March 4–14, 2025
Guarantor: InfraCredit
Issuing House: Iron Global Markets Limited
