The Nigerian Stock Exchange (NSE) last Friday approved the application of the Lagos State Government’s offer to raise N47 billion.

Lagos state had applied for a six year tenor N47 billion bond offer for subscription at a fixed rate of 16.50 percent due 2023, under its N500 billion debt issuance programme.

According to the state’ governor, the N500 billion Third Debt Issuance Programme is targeted at improving the physical and social infrastructure base of the State.

Lagos State’s Governor Akinwunmi Ambode, at the signing ceremony held at the Lagos House, Ikeja, last year said that despite the continued challenges in the economy and difficult market conditions which have seen the last three Federal Government Bond auctions undersubscribed by an average 32 percent, Lagos State sold some 80 percent of the bonds it offered at a 57bps spread to the sovereign.

He 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 state government remains committed to improving the physical and social infrastructure base of the state and proud of its reputation as a most responsible issuer in the Nigerian capital markets”.

The eight issuing houses and financial advisers to the instrument are, Futureview Financial Services Limited; United Capital; Radix Capital Partners Limited; SFS Financial Services Limited; Stanbic IBTC Capital Limited; Union Capital Markets Limited; Vetiva Capital Management Limited; and Zenith Capital Limited. Stock Brokers are Chapel Hill Denham Securities Limited and Coronation Securities Limited

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.

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