Nigerian Startup, MAX, Floats N10 Bn Bond

30 September 2020

Nigerian mobility startup, Metro Africa Xpress (MAX), has issued a N10 billion ($22 million) multi-currency bond.

The company says it has already raised ₦400 million in the first segment of the N10 billion issue.

With the new move, MAX became the first mobility company in Africa to issue a bond.

MAX Chief Executive Officer and co-founder, Adetayo Bamiduro, said the company's bond programme was structured in line with its mission to build the technology and financing infrastructure for mobility across Africa.

He noted that proceeds from the bond shall be used to fund MAX's growing asset financing programme across two-wheeler, three-wheeler and other vehicle classes in Nigeria, as MAX continues to institutionalize driver financing across the continent.

He said: "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."

On his part, the Chief Growth Officer and Co-Founder,, Chinedu Azodoh, said the innovative nature of MAX's driver-vehicle-collection technology was essential to demonstrating the company's ability to scale and manage an ever-growing pool of drivers across six cities.

He noted that the funding was delivered on the basis of those proprietary technology capabilities that enable heightened levels of portfolio scrutiny and monitoring, which were fundamental to successfully closing the transaction.

MAX, alongside Gokada, O'Ride, and other bike companies, have had their businesses disrupted in Lagos in recent time.

Earlier in the year, the state government banned the operation of motorcycles (popularly called Okada) and tricycles (Keke) across the state.

PREMIUM TIMES understands that the transaction and bond programme were both arranged by DLM Advisory (DLM), a Nigeria-based full-service developmental investment company that combines advisory, origination, underwriting and distribution services.

The bond, distributed through a private placement, received strong interest from local and international fixed income investors despite the economic disruptions, the company said.

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