InfraCredit, GPC Energy sign ₦20bn bond guarantee
The 20 billion naira, 10-Year Series 1 Senior Guaranteed Fixed Rate Infrastructure Bonds issued by GPC Energy and Logistics Limited has received a guarantee from Infrastructure Credit Guarantee Company, as it plans to finance the acquisition of additional trucks to sustain the strong growth trajectory. Chukwudi Okonji, the CEO of GPC Energy and Logistics, joins CNBC Africa for more.
Tue, 21 Dec 2021 11:57:04 GMT
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AI Generated Summary
- GPC Energy and Logistics secures a 20 billion naira bond guarantee from InfraCredit to drive business expansion and acquisition of new assets.
- Chukwudi Okonji highlights the challenges facing the Nigerian transportation sector, including double taxation and regulatory impediments.
- InfraCredit's role in facilitating long-term debt funding for GPC Energy and Logistics underscores the importance of strategic partnerships in unlocking growth potential.
GPC Energy and Logistics Limited, a prominent player in the Nigerian infrastructure industry, recently secured a significant boost with the issuance of a 20 billion naira, 10-year Series 1 Senior Guaranteed Fixed Rate Infrastructure Bonds. This milestone achievement was made possible through a guarantee from Infrastructure Credit Guarantee Company (InfraCredit), signaling a pivotal moment for the company's growth strategy. In an exclusive interview with CNBC Africa, Chukwudi Okonji, the CEO of GPC Energy and Logistics, shed light on the significance of this landmark transaction.
Discussing the motivation behind the bond issuance, Okonji emphasized the critical need for long-term funding to drive business expansion. He highlighted the company's vision to acquire new assets and refinance existing ones, positioning GPC Energy and Logistics for sustained growth over the coming years. The successful raising of 20 billion naira represents a major step towards realizing these strategic objectives.
In the interview, Okonji revealed that the transportation sector in Nigeria faces various challenges, including double taxation and regulatory hurdles. He pointed out the importance of government support in creating an enabling environment for businesses to thrive, stressing the pivotal role of the transport industry in driving economic activities within the country. Okonji's insights underscored the pressing need for policy reforms and infrastructure improvements to unlock the sector's full potential.
Highlighting the role of InfraCredit in facilitating the bond issuance, Okonji commended the triple-A rated institution for its instrumental support. By guaranteeing the long-term debt funding, InfraCredit has not only enabled GPC Energy and Logistics to secure critical financing but also provided a roadmap for sustainable planning over the next decade. The CEO expressed gratitude for InfraCredit's partnership, emphasizing the positive impact of the bond guarantee on the company's operational efficiency and growth trajectory.
The successful issuance of the 20 billion naira bond signifies a significant milestone for GPC Energy and Logistics as it embarks on a journey of expansion and consolidation in the Nigerian infrastructure sector. With a clear focus on acquiring new assets and optimizing existing resources, the company is poised to capitalize on emerging opportunities and overcome industry challenges. By leveraging InfraCredit's support and the long-term funding secured through the bond, GPC Energy and Logistics sets a strong foundation for sustainable growth and long-term success in the dynamic Nigerian market.
As the company navigates the evolving landscape of the infrastructure industry, Okonji's strategic vision and emphasis on collaboration with key stakeholders underscore GPC Energy and Logistics' commitment to driving innovation and excellence in the transport sector. With a relentless focus on operational efficiency, customer satisfaction, and industry best practices, GPC Energy and Logistics is well-positioned to lead the way in shaping the future of Nigeria's infrastructure landscape.