The Ekiti State Government extends its congratulations to Craneburg Construction Company, and its sister entity Craneburg EKSG Motorways PLC on the successful completion of its N32.5 billion 20-year bond issuance to design, build, operate and transfer the Ekiti Ring Road project.
The bond issuance, which was “AAA” rated and oversubscribed by domestic pension funds, is the first successful bond issuance for a road project in a State backed by an irrevocable and unconditional guarantee under InfraCredit’s Annuity PPP Guarantee Product, which is targeted at projects in States with strong PPP laws, as well as active investment promotion agencies.
Ekiti State remains at the forefront of attracting private capital, and has enacted a best-in-class Public Private Partnership Law, with the support of the House of Assembly.
Apart from the Law, the State has an active Investment Promotion Agency, whose board is chaired by Governor Biodun Oyebanji, to demonstrate the emphasis placed on investment promotion. The successful completion of the public corporate bond issuance, approved by the Securities & Exchange Commission shows investors not only have strong confidence in Craneburg’s track record, but also have a lot of confidence in the business environment in Ekiti State, where the project being financed is situated.
This novel financing approach is a game changer in Nigeria, and will allow for a rapid development of infrastructure projects by private investors in States, thereby limiting the pressure on the States to fund such projects themselves. By closing this historic project, it means Ekiti State is now the second state, after Lagos, to attract 20 year financing from private capital for such large scale infrastructure deals. However, this is not the first time Ekiti State is attracting such investments.
The Ekiti Independent Power Plant (IPP), another PPP project, was designed, built, and is being operated by Fenchurch Limited, delivering 3MW of electricity to the State.
The continuous attraction of capital to Ekiti State is clear proof that both private entities and the investment community are fully aligned with the shared prosperity agenda of the Biodun Abayomi Oyebanji administration. It also shows the result of continuity, and the Government of Ekiti State recognises the immediate past Governor, Dr. Kayode Fayemi, whose administration birthed the idea of the Ring Road project.
When completed, the first phase of the Ring Road project will be a game changer in Ekiti State, and will provide quicker connections to several neighbouring towns and Ado-Ekiti, while also providing direct access to vehicles coming to and from the Ekiti Agro-allied International Cargo Airport. Once the first phase is successfully completed and put to use, the State will continue to explore creative ways of bringing more private investments to develop the second phase of the road which connects Ijan-Ikere-Ilawe-Igede-Iworoko.
The Government congratulates all the parties who made this possible: Craneburg/EKSG Motorways PLC, the concessionaire; InfraCredit, who guaranteed the bond; EKDIPA, who ensured the required investment environment exists in the State; but most especially, the road users, who will benefit from this project.
Signed
Yinka Oyebode
Special Adviser (Media) to the Governor
17- 04-2025
Last modified: April 17, 2025
