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MAX.ng Sells N400m Bonds from N10bn Debt Scheme
By Adedapo Adesanya
Metro African Xpress, otherwise known as MAX.ng, has announced the successful issuance of a N400 million one-year fixed-rate notes series 1 bond, making it the first bond issued by a mobility company in Africa.
The bond is the first tranche of its newly N10 billion ($22 million) multicurrency Private Company Bond (PCB) programme and was offered to pre-selected investors.
The Nigerian mobility startup made the disclosure on Monday, September 28, 2020, adding that the transaction was arranged by DLM Advisory Limited, a developmental investment bank regulated by the Securities and Exchange Commission (SEC).
In the notice seen by Business Post, MAX noted that proceeds from the papers will be used to fund its growing asset financing program across 2-wheeler, 3-wheeler and other vehicle classes in Nigeria and beyond, as MAX continues to institutionalize driver financing across the continent.
It added that despite the challenging global economic backdrop, “the bond, distributed through a private placement, received strong interest from highly reputable local and international fixed-income investors that are seeking exposure to a high-quality issuer like MAX.”
Speaking on the success of the milestone, Mr Adetayo Bamiduro, CEO and co-founder of MAX.ng noted, “MAX is extremely pleased with the successful bond issuance, which reflects the market confidence in MAX’s mission, strategy and execution capabilities.
“This is further evidence that MAX remains at the forefront of technology, financial and business model innovation to solve a fundamental aspect of Africans’ lives.”
Also, Chief Growth Officer and co-founder of MAX.ng, Mr Chinedu Azodoh said, “the fully integrated and innovative nature of MAX’s DVC [driver-vehicle-collection] technology stack was essential to demonstrating our ability to scale and manage an ever-growing pool of financed drivers across six cities with unmatched efficiency, speed and agility.
“This funding was delivered on the basis of those proprietary technology capabilities that enable heightened levels of portfolio scrutiny and monitoring. These were fundamental to successfully closing this trailblazing transaction.”
Mr Sonnie Ayere, Group CEO of DLM Capital Group, added; “This is a bold step in advancing DLM’s developmental driven mandate by providing innovative solutions to meet the funding needs of players in key sectors of the economy, through the capital markets. MAX has positioned itself at the forefront of its industry with its unique business model that deploys technology to cater to the peculiarity of mobility within Nigeria’s major cities.
“In addition to this, the MAX funding program has played positively in the aspect of employment creation. Given the average cost of the vehicles financed, the capital unlocked through the Series 1 Bond will lead to the creation of close to 1,400 additional jobs, which in turn has a positive multiplier effect on the Nigerian economy.
“As a developmental Investment Bank committed to creating direct impacts to the lives of people, we have put our money where our mouth is and have taken a credit decision to support their inaugural issuance, due to its strong credit fundamentals and the social and economic impact it brings. We are delighted to have assisted MAX on this significant stride.”
On his part, Mr Guy-Bertrand Njoya, Chief Financial Officer of MAX.ng, “most exciting for us about this ground-breaking funding structure is being able to close it amidst the current social and economic uncertainty.
“We are deeply honoured by the confidence shown by the investment community in our ability to continue leveraging access to wholesale finance as well as other internal capabilities — including proprietary technology solutions, exclusive vehicle manufacturer deals, low-cost credit, discounted insurance and other financial services — to serve the growing group of overlooked, underserved, unbanked or underbanked Africans like it has never been done before.”
Mr Emeka Ngene, the head of DLM Advisory also commented that “This is in keeping with the vision of the DLM brand. With a commitment to increasingly deepen the penetration of the domestic capital markets with every new project we undertake, delivering this assignment for MAX further helps in driving that concept. It will be good to also make special mention of the team at the Shell Foundation who played a key role in the delivery of this mandate by the provision of catalytic capital.
“At DLM we have always believed that local currency funding is the way to go for businesses like MAX with significant impact potential. Our hope now is that the success of this deal further paves the way for more collaboration towards providing similar solutions for other businesses with clear development objectives.”
MAX forayed into the mobility scene to ease the transportation problem in Lagos, but it has since moved to various offerings in other transport and logistics services following the restriction of commercial motorcycles and tricycles by the Babajide Sanwo-Olu administration earlier this year.
By Aduragbemi Omiyale
Over $280 million has been invested by Dangote Cement Plc in compressed natural gas (CNG) technology and infrastructure to enhance energy efficiency and drive economic growth in Nigeria.
The cement maker turned to CNG in demonstration of its support for President Bola Tinubu’s drive for cheaper and cleaner fuelling alternatives for all Nigerians.
At a recent event, the President emphasised the urgent need for Nigeria to utilise its vast natural gas resources in the transportation sector.
He stated that CNG transportation is an economic necessity for Nigeria, signalling a significant shift in the country’s approach to public transportation and energy use.
This has spurred Dangote Cement to adopt CNG, reflecting its dedication to mitigating climate change and supporting a transition to a low-carbon economy, making it the largest operator of CNG trucks in the country.
The chief executive of Dangote Group, Mr Aliko Dangote, said his company’s investments in CNG are also in line with Nigeria’s Nationally Determined Contribution (NDC) under the Paris Agreement, which aims for net-zero emissions by 2060.
“In this pursuit of transition to clean energy, we are optimistic of a remarkable accomplishment by President Tinubu, as he has taken the lead in the nation’s drive towards energy efficiency. This presupposes private sector intervention to support this noble idea initiated by the President,” he stated.
The businessman noted that the firm’s early adoption of CNG has made it the largest operator of CNG trucks in Nigeria, emphasising that the initiative is a boost to Mr Tinubu’s quest towards enhancing the nation’s energy independence and contributing to a more secure energy future.
“We are now using CNG vehicles, especially with the new policy of the federal government, launched under the Renewed Hope Agenda by President Tinubu. We are committed to a cleaner and greener future,” Mr Dangote said.
On his part, the chief executive of Dangote Cement, Mr Arvind Pathak, said the cement miller aims to acquire 100 per cent CNG trucks as part of a long-term plan to transition its entire fleet to CNG.
He disclosed that the CNG infrastructure investments have positively influenced Nigeria’s transition to cleaner fuels, adding that the CNG station at Obajana, capable of refuelling over 3,000 trucks, exemplifies this commitment, with a second station currently under development in Ibese to support fleet operations further.
“By mid-2026, Dangote Cement aims to operate a fleet predominantly powered by CNG. To facilitate this transformation, we are investing in expanding our CNG fuelling infrastructure, ensuring that our growing fleet has reliable access to CNG as our fuel,” Mr Pathak said.
He added that plans are afoot to aggressively pursue this timeline of deployment, beginning from the first quarter of 2025, saying, “We are keeping our eyes on the ball to ensure that we do not miss our target dates of full compliance.”
By Adedapo Adesanya
The Lagos State Government has announced that the Red Rail line will begin full passenger operations on Tuesday, October 15, 2024.
This was disclosed by the Managing Director of the Lagos Metropolitan Area Transport Authority (LAMATA), Mrs Abimbola Akinajo.
“Full passenger operations on the Lagos Rail Mass Transit (LRMT) Red Line will commence on Tuesday, October 15, 2024, Managing Director of Lagos Metropolitan Area Transport Authority (LAMATA), Engr. Abimbola Akinajo affirmed today,” a public notice from the agency read.
According to LAMATA, Governor Babajide Sanwo-Olu, members of his executive council, and other dignitaries will launch the passenger operations and ride with commuters on the first fee-paying passenger trip.
Mrs Akinajo said that train services would commence daily from Agbado at 6.00 am.
“Before now, trips have emanated from Oyingbo at 9.00 am. The first train therefore got to Agbado at 10.07 am. The adjusted timetable foreshadows upcoming commercial passenger operations commencing on Tuesday, 15th October 2024,” the agency said.
He explained that the new timetable was the outcome of data gathered through the series of tests, including that for the non-fee-paying passengers. According to him, the new timetable gives priority to the origin trips from Agbado where riders live and work at Ikeja, Oshodi, and Lagos Island.
“For passengers whose journeys terminate on Lagos Island, buses will be available at Oyingo bus terminal for them to complete their journeys,” LAMATA said.
“It would be recalled that infrastructure for the Red Line was commissioned by President Bola Ahmed Tinubu on 29th February 2024. The Red Line’s first phase spanning 27 kilometres has eight stations at Oyingbo, Yaba, Mushin, Oshodi, Ikeja, Agege, lju, and Agbado.”
By Modupe Gbadeyanka
The Federal Road Safety Corps (FRSC) has said it would update members of the public on the new rates for driver’s licences and number plates.
On Wednesday, the agency, through its social media platforms, released a revised rate for the items, attributing the increase to the Joint Tax Board (JTB).
However, after removing the information from its platform, it issued a rejoinder, claiming the image of the JTB was added to the notice “in error.”
In the now-deleted flyer, the road safety organisation said from November 1, 2024, to obtain a 3-year motor vehicle driver’s licence, applicants will pay N15,000, while the 5-year licence will cost N21,000.
As for the 3-year motorcycle and tricycle driver’s licence, it will now be N7,000 and N11,000 for the 5-year licence.
It also said the standard private vehicle number plate will cost N30.000, the standard commercial vehicle number plate will also be N30,000, while the fancy vehicle number plate will cost N400,000.
In addition, the motorcycle number plate will be N12,000, the articulated vehicle number plate will be N90,000, the deal motor vehicle number plate will be N100,000, the government fancy motor vehicle number plate will be N120,000, the government standard number plate will be N80,000, the government fancy motorcycle number plate is N50,000, and the government standard motorcycle number plate will beN20,000.
But in its rejoinder signed by its Assistant Corps Marshal for Corps Public Education Officer, Mr Olusegun Ogungbemide, on Thursday, the agency said, “Recall a flyer earlier released on revised rates for number plates and driver’s licence bearing JTB logo, which was earlier released on FRSC social media page, the corps wishes to inform the general public to disregard the content of the flyer, particularly as it relates to the JTB logo, which was added in error.
“Further information on the revised rates will be made available to the public in due course. The Corps regrets any inconveniences caused by the release.”
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