Lagos Issues N47bn Bond

The Lagos State Government on Friday issued its N47bn Series 1 Bond maturing in December, 2023 under its N500bn Third Debt Issuance Programme.

Governor Akinwunmi Ambode, at the signing ceremony held at the Lagos House, Ikeja, said that the programme was targeted at improving the physical and social infrastructure base of the state.

He said, “The book keeping was concluded on Dec. 23 with the first issuance priced at 16.5 per cent.

“Despite the continued challenges in the economy and difficult market conditions which have seen the last three Federal Government Bond auctions under-subscribed by an average 32 per cent, the state has sold some 80 per cent of the bonds it offered at a 57bps spread to the sovereign.”

He expressed appreciation for the confidence investors had reposed in the state government, saying that it was an eloquent testimony of the state government’s credit worthiness.

He said, “We are truly humbled by the confidence investors have once again demonstrated in the Lagos State credit story.

“The Lagos State Government remains committed to improving the physical and social infrastructure base of the state.

“It is proud of its reputation as a most responsible issuer in the Nigerian capital markets.”

Also, the Chief Executive Officer, Chapel Hill Denham, Financial Advisers and Lead Book Runners, Mr. Bolaji Balogun, said that state was leading from the front in the issuance of bond in spite of the prevailing market dynamics.

He said, “We are deeply honoured to work with the Lagos State Government.

“It has again affirmed its peerless credit reputation in tricky market conditions right at the end of the year to issue the only bond by a state in Nigeria, in 2016.

“I thank all of our colleagues in the issuing party for working with us to deliver a successful outcome.”