The Ekiti State Government, on Thursday congratulated Craneburg Construction Company and its sister entity, Craneburg EKSG Motorways PLC, on the successful completion of a N32.5 billion, 20-year bond issuance to finance the design, construction, operation, and transfer of the Ekiti Ring Road project.
In a press release issued by Mr. Yinka Oyebode, Special Adviser on Media to Governor Biodun Oyebanji, the state described the bond issuance as a historic milestone.
Rated “AAA” and oversubscribed by domestic pension funds, it marks the first successful bond issuance for a road project in a state backed by InfraCredit’s Annuity PPP Guarantee Product.
This product targets projects in states with robust Public-Private Partnership (PPP) laws and 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,” the statement read.
It highlighted the role of the state’s Investment Promotion Agency, chaired by Governor Oyebanji, in driving investment initiatives.
The bond, approved by the Securities and Exchange Commission, reflects strong investor confidence in Craneburg’s track record and Ekiti’s conducive business environment.
The innovative financing model is expected to accelerate infrastructure development by private investors, easing the financial burden on states.
Ekiti becomes the second state in Nigeria, after Lagos, to secure 20-year private capital financing for large-scale infrastructure.
The statement also noted Ekiti’s history of attracting such investments, citing the Ekiti Independent Power Plant (IPP), a PPP project operated by Fenchurch Limited, delivering 3MW of electricity to the state.
The Ekiti Ring Road project’s first phase is poised to transform connectivity, linking neighboring towns and Ado-Ekiti while providing direct access to the Ekiti Agro-allied International Cargo Airport.
Upon completion, the state plans to explore further private investments for the second phase, connecting Ijan, Ikere, Ilawe, Igede, and Iworoko.
The government acknowledged the contributions of former Governor Dr. Kayode Fayemi, whose administration initiated the Ring Road project, and praised the alignment of private entities and investors with Governor Oyebanji’s shared prosperity agenda.
“The Government congratulates all parties involved: Craneburg/EKSG Motorways PLC, InfraCredit, EKDIPA, and, most importantly, the road users who will benefit from this project,” the statement concluded.
