GPC-SPV Company Plc has announced plans to raise N30 billion through a Series 1 Senior Guaranteed Fixed Rate Infrastructure Bond, marking a major return to Nigeria’s debt capital market by its parent company, GPC Energy and Logistics Limited.
The proposed bond will be issued under a new N100 billion Bond Issuance Programme and will have a 10-year tenor. The transaction is expected to provide funding for the company’s expansion while also refinancing some of its existing obligations.
GPC Energy and Logistics, a Nigerian business-to-business haulage and logistics company founded by former banker Elvis Chukwudi Okonji, began operations in 2010 with just five trucks. The company has since expanded substantially and now operates a fleet of more than 900 trucks, serving major corporate customers such as Nestlé and Nigerian Breweries.
IRON Capital Markets Limited, the Issuing House for the transaction, announced the programme on Monday, August 24, 2026, in a circular to capital market operators obtained by Nairametrics.
N30bn Bond to Carry InfraCredit Guarantee
According to the offer details, the N30 billion Series 1 bond will be fully guaranteed by Infrastructure Credit Guarantee Company Plc (InfraCredit).
The guarantee will be unconditional and irrevocable and carries an AAA rating, providing significant credit enhancement for the proposed debt instrument.
GPC-SPV serves as the special-purpose funding vehicle incorporated by GPC Energy and Logistics, which is acting as the Sponsor and Co-Obligor, to enable the company access funding from Nigeria’s domestic capital market.
The bond will have a 24-month principal moratorium, while coupon payments will be made semi-annually.
Funds raised will be used primarily to refinance existing debt and support the expansion of GPC Energy and Logistics’ truck fleet as the company continues to grow its operations.
However, important commercial details are yet to be released. These include the coupon rate, book-build price guidance, offer opening and closing dates, and the exact maturity date.
The bond is targeted at Qualified Institutional Investors and High-Net-Worth Investors, in line with applicable Securities and Exchange Commission (SEC) rules.
GPC Doubles Debt Programme to N100bn
The proposed transaction represents a significant expansion of GPC’s presence in Nigeria’s debt capital market.
The company previously operated a N50 billion Debt Issuance Programme, under which it raised N20 billion in 2021 through its maiden debt capital market transaction.
That 10-year Series 1 Senior Guaranteed Fixed Rate Infrastructure Bond, which is due in 2031, was also fully guaranteed by InfraCredit. The 2021 transaction was reportedly 25.3% oversubscribed and attracted nine institutional investors, including Nigerian pension funds.
Proceeds from the earlier bond were mainly used to refinance existing debt, including foreign-currency obligations, and finance the acquisition of up to 220 additional trucks.
The latest programme therefore represents a substantial scale-up. GPC's overall debt issuance programme has doubled from N50 billion to N100 billion, while the first proposed issuance under the new programme is 50% larger than the N20 billion raised in 2021.
Strong Revenue Growth Amid High Leverage
GPC's operational expansion has been accompanied by significant revenue growth in recent years.
Revenue increased from N17.65 billion in 2022 to N42.11 billion in 2024, representing growth of approximately 139% over the two-year period. In 2024 alone, revenue rose by about 76% year-on-year.
Operating profit also increased from N3.81 billion in 2022 to N8.96 billion in 2024, with operating margins remaining broadly within the 21% to 24% range.
Despite the strong growth, the company's balance sheet remains highly leveraged.
GPC's borrowings stood at N27.69 billion in 2024, compared with shareholders' equity of N4.48 billion. This translated to a debt-to-equity ratio of approximately 6.2 times.
There were, however, signs of some improvement in the company's capital structure. Borrowings declined by about 5.8% during 2024, while shareholders' equity increased by 16.6%.
Nevertheless, the proposed N30 billion bond remains substantial relative to the company's financial size. The planned issuance is equivalent to roughly 71% of GPC's 2024 revenue and approximately 6.7 times its shareholders' equity.
InfraCredit Guarantee Key to Investor Appeal
The InfraCredit guarantee is expected to play a central role in the credit profile and attractiveness of the transaction, particularly given GPC's relatively high level of leverage.
The AAA rating associated with the bond reflects the unconditional and irrevocable guarantee provided by InfraCredit rather than the standalone credit strength of GPC.
InfraCredit's guarantee structure is designed to help infrastructure-related businesses access longer-term naira financing while improving the appeal of their debt instruments to institutional investors such as pension funds and insurance companies.
For investors, the eventual coupon rate will therefore be an important consideration. Since the rate has not yet been disclosed, investors will need to compare the eventual yield with prevailing Federal Government of Nigeria (FGN) bonds and other highly rated fixed-income securities once book-build price guidance becomes available.
Bond to Support Further Fleet Expansion
The proposed fundraising comes as GPC continues to expand its position in Nigeria's haulage and logistics industry.
From its modest start with five trucks in 2010, the company has grown into a major B2B logistics operator with a fleet exceeding 900 trucks and a customer base that includes some of Nigeria's largest corporate businesses.
By combining debt refinancing with additional funding for fleet expansion, the new bond programme could provide the company with longer-term financing to support its next phase of growth.
The success of the transaction will ultimately depend on the pricing and investor demand once the offer details are released. However, the combination of GPC's expanding operations and InfraCredit's guarantee could position the bond as a notable offering in Nigeria's fixed-income market.