Transcorp hotels issuesN10bn bond to investors

Transcorp Hotels Plc announced a successful naira bond market transaction, issuing a total of N10 billion.

The proceeds of the issue will be used to finance the upgrade of the company’s flagship Hotel, Transcorp Hilton Abuja, and construction of a multipurpose banquet centre.

The transaction is a 7 year fixed-rate bond due in 2022 under a N30 billion medium term bond programme.

The subscription consists of N10 Billion in Series 1 in a senior 7-Year 16.00% Fixed Rate (Unsecured) Bonds Due 2022.

The Series 1 Bonds are fully underwritten by FSDH Merchant Bank Limited and United Capital Plc.

The new Bonds will carry a gross coupon of 16.00 percent per annum (amortised) for a period of seven years.

The redemption on maturity, expected to be 2022, will be at 100 percent of the nominal amount of the Bonds.

The Bonds are available in denominations of N1, 000, and will be listed on the main market of the Nigerian Stock Exchange and also the FMDQ OTC platform for enhanced tradability.

FSDH Plc is the lead issuing house, while United Capital Plc and Stanbic IBTC Capital Limited are joint issuing houses.

FSDH and United Capital Plc are the joint underwriters on the Transaction.

“This transaction represents part of our financing of the upgrade of the Transcorp Hilton Abuja and the development of a 5,000-seater multipurpose Banquet centre. The availability of funds enables us to enhance our financial flexibility by diversifying our sources of funding while significantly extending the maturity of the Group’s funding and ensuring optimal capital mix. We are delighted by the investor reception for Transcorp Hotels in the bond markets,” said Valentine Ozigbo, MD/CEO of Transcorp Hotels Plc.

The company held a signing ceremony in Ikoyi, Lagos to mark the issue of Series 1 7-Year 16.00% Fixed Rate (Unsecured) Bonds.

The company has secured Securities and Exchange Commission (SEC) approval as well as a certificate of “PENCOM Compliance” to enable participation by the Pension Fund Administrator (PFA) community, as one of the target investors in the bond.

Transcorp Hotels Plc is the hospitality subsidiary of Transnational Corporation of Nigeria Plc (“Company”).

The Company owns and operates Transcorp Hilton Abuja, which provides luxury accommodation, world-class cuisine, and conferencing and leisure facilities to business travellers and tourists from all over the world.

The Company also holds 100 per cent interest in Transcorp Hotels Calabar Limited, which owns and operates the Transcorp Hotel in Calabar.