Lagos government closes N85.14bn Series 2 Bond issuance programme

Governor Akinwunmi Ambode-led Lagos state government has announced the closure of the N85, 140,000,000 Series 2 Bond Issuance geared towards improving the physical and social infrastructure in the state.

The series II bonds were issued Friday, August 12, with varying maturities.

Akinyemi Ashade, the commissioner for finance, Monday, said the bond, under the N500bn third debt issuance programme, was issued in two tranches of N46,370,000,000 at 16.75 percent (maturing August 2024) and N38,770,000,000 at 17.25 percent (maturing August 2027).

According to him, the N85.14 billion Series II issuance was the largest bond issuance in Nigerian capital markets in the last four years and the second largest issuance ever.

He also said that it was the first time any non-FGN issuer in Nigeria has issued out to 10 years, thereby extending the non-sovereign yield curve.

“We value the reputation we have earned as the most responsible issuer in the Nigerian capital markets and thank everyone who has worked with us to deliver a successful outcome,” Ashade said.

The finance commissioner said that Akinwunmi Ambode was encouraged by the sustained support the State’s credit story had received from investors.

“In challenging market conditions, we are encouraged by the sustained support that the Lagos State credit story has received from investors for which we are grateful. This support is critical to our quest to improve the physical and social infrastructure in the State and lift the economic and social welfare of all citizens of Lagos State,” Governor Ambode said.

The Commissioner said that Chapel Hill Denham acted as lead issuing house and book runner and led an issuing party including 10 other book runners on what he described as a landmark transaction.