LASG redeems N57.5B programme 1 Series 2 bonds
The Lagos state government has redeemed the N57.5 Billion Bond. The Bond was the second series under the state’s initial N275 billion programme, which was launched on December 31, 2008. At the time of its issuance, the N57.5 Billion Bond was the first sub-national issuance to be undertaken by way of a book build.
In accordance with the provisions of Section 236 of the Investments and Securities Act 2007 – requiring that the Register of Bondholders (‘the Register’) be closed 21 (Twenty-one) days preceding interest payments, the Register was closed on Wednesday, March 29, 2017. Subsequently, the Registrars effected payment of the principal and final coupon payment on Wednesday,April 19, 2017.
Governor Akinwunmi Ambode, commenting on the redemption said, “the payment of the Bondholders of the Programme 1, Series 2 bonds further strengthens the State’s position as a reputable borrower, as demonstrated by the prompt redemption of the Bonds on maturity.’’
Commissioner for Finance, Mr. Akinyemi Ashade, said, “we hope this confirms Lagos State as a credible borrower in capital markets and that investors will further illustrate their confidence in the State by investing in its upcoming Programme 3, Series 2 bond.”
So far, the state has now redeemed N107.5 billion of outstanding bonds, creating headroom for further issuances to support the acceleration of the State’s investment in improved physical and social infrastructure and amenities. The State remains committed to and is proud of its reputation as a most responsible issuer in the Nigerian capital markets.
Chapel Hill Denham acted as the Lead Issuing House on the transaction.
The state government registered a N500 billion Third Debt Issuance Programme in December 2016, and has a credit rating of A+ by Global Credit Ratings Co. and Agusto & Co.
