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Primero Transport Services Raises N16.50bn Series 1 Notes

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Primero Transport Services Limited has signed the first series of the N100 billion Bus Rapid Transit Systems (BRTS) securitization transaction.

The first series comprised of N16.5 billion, a 7 year bonds paying semi-annual coupons at a fixed rate of 17 per cent per annum. The bonds are solely backed by BRT receivables, they are amortising and have an investment grade rating from all three rating agencies.

Board chairman, Hon. Ademola Seriki, opening the signing event highlighted the significance of the Series 1 Bonds in what he considers to be the best solution designed by DLM Advisory Partners in being able to connect long term capital to the urban transportation sector using securitization technology.

He further emphasized the commitment of Primero in ensuring that the proceeds of the bond issue are judiciously utilized; stating that “as a company we do not take lightly the confidence that the our investors, the 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.”

On his part, managing director of Primero, Mr. Fola Tinubu said the bond proceeds will be utilised to meet Primero’s working capital requirements which will 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, Mr. Kennedy Ighodaro, executive director of DLM Advisory Partners reiterated the company’s commitment to developing the Nigerian capital markets by introducing bespoke financing products for its clients.

He added that, “this transaction represents another securitization 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 have 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.

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