Lagos Lures Investors with 12.75% for N125bn Bond Sales
By Dipo Olowookere
The Lagos State government has returned to the capital market to raise fresh funds to execute some critical projects aimed to stimulate the economy and achieve the current’s administration’s THEME Agenda.
Mr Babajide Sanwo-Olu, when he was sworn in on May 29, 2019, promised to make the state better than he met it and make it one of the best in Africa.
To achieve this, the government in 2020 approached the capital market to source N100 billion through bond sales at 12.25 per cent and more than a year after, it is seeking N125 billion.
Business Post reports that subscription for the debt securities commenced on Friday, November 19, 2021, and will close at 2.00 pm on Wednesday, December 1, 2021.
According to details of the exercise, the 10-year fixed-rate senior unsecured notes have price guidance of 12.50 to 12.75 per cent coupon rate per annum.
Intending investors are required to buy a minimum of N10 million, with multiples of N5 million thereafter from authorised agents, the details further revealed.
The N125 billion bond is series IV of the state’s N500 billion Bond Issuance Programme.
Lagos State is a Category A state among the state governments in Nigeria and is the most developed in the country, described as the country’s economic and commercial hub, accounting for more than 25 per cent of the nation’s gross domestic product (GDP).
The aquatic city is also a Top 5 economy in Africa and continues to attract a wide range of regional and global businesses.
Underpinning the state’s strong economy is its robust internally generated revenue (IGR) which continues to grow year on year and remains resilient despite macroeconomic headwinds and disruptions caused by the global pandemic. The IGR accounts for about 65 per cent of its revenue.