Lagos Issuing Houses Seal Deal On N47 Billion Bond
Lagos State Government has said it has concluded talks on its N47 billion bond issuance, saying the Programme is targeted at improving the physical and social infrastructure base of the state.
In his remarks at the signing ceremony, held at the Lagos House, Ikeja, the state Governor, Mr. Akinwunmi Ambode said the issued N47billion Series 1 Bond will mature in December 2023, under its N500 billion Third Debt Issuance Programme.
He said 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, Lagos State sold some 80 percent of the bonds it offered at a 57 bps spread to the sovereign.
Ambode expressed appreciation for the confidence investors have reposed in the state government, saying that it was an eloquent testimony of the 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 and is proud of its reputation as a most responsible issuer in the Nigerian capital markets.”
The Governor also acknowledged the support received in the issuance process from the Minister of Finance, Mrs. Kemi Adeosun, as well as the Attorney General of the Federation and Minister for Justice, Mr. Abubakar Mallami and their teams, the Security and Exchange Commission, the Federal Debt Management Office and the State’s advisers.
Also speaking, the Chief Executive Officer, Chapel Hill Denham, Financial Advisers and Lead Book Runners, Mr. Bolaji Balogun said Lagos State was leading from the front in the issuance of Bond despite the prevailing market dynamics.
“We are deeply honoured to work with the Lagos State Government, which 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 and I thank all of our colleagues in the issuing party for working with us to deliver a successful outcome,” Balogun said.
