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Transcorp Hotels – the hospitality subsidiary of Transnational Corporation of Nigeria (Transcorp) – has listed its N10billion bond on the Nigerian Stock Exchange (NSE) and the FMDQ OTC Securities Exchange.

The listing comes after the company successfully closed the first and second tranches of a N30 billion bond programme in the last quarter of 2015. The hospitality company has raised a total of N19.758 billion from the issuances.

Transcorp Hotels launched a bond programme last year to raise funds for renovation of its flagship hotel – the Transcorp Hilton, Abuja – and the completion of two Hilton hotels in Lagos and Port Harcourt.

According to a statement released on Monday, the company said the first tranche, which is worth N10 billion, has been listed for trading on bond markets. It is a 7-year bond with a fixed rate of 16 percent, maturing in 2022.

“By successfully raising these funds, we now have sufficient funding for our immediate priority projects especially the upgrade and expansion of the multi–award winning and iconic Transcorp Hilton, Abuja”, said Valentine Ozigbo, the Managing Director/CEO of Transcorp Hotels.

Transcorp Hotels announced the conclusion of its N10 billion Series 1 bond in November 2015 and another N9.75bn Series 2 bond in December 2015. Ozigbo said Series 1 was oversubscribed by 30 percent while Series 2 was oversubscribed by 98 percent, demonstrating “undeniable investors’ confidence to the achievements and leadership of the company.”

Transcorp Hotels owns two choice properties, Transcorp Hilton, Abuja, and Transcorp Hotels, Calabar. The company is currently developing two properties in Lagos and Port Harcourt.

Chibuike Oguh is Financial Nigeria's Frontier Markets Analyst