Lagos State Government has announced the issuance of a N100 Billion Series III Bond, under its N500 Billion Bond Issuance Programme. This Programme is Lagos State’s third Bond Programme; the State having previously issued Bonds under N107.5 Billion and N167.5 Billion Programmes.
At the conclusion of the Book Build, the offer for the up to N100 Billion Bond Issuance recorded an over subscription at 196.5%. This strong response to the new administration’s debut bond issuance is a testament to continued investor confidence in Lagos State and the State’s strong credit profile.
The N100 Billion Bond is the largest bond issuance in our domestic capital markets by a sub-national government; and this issuance is only the second time a 10-year instrument has been issued by a non-sovereign issuer. Lagos State issued the first 10-year Bond in 2017.
Lagos State maintained its discipline on size and pricing, despite the over-subscribed book and the active participation from a wide array of institutional investors, including banks, pension fund administrators, asset managers and corporates. The Series III Issuance was maintained at N100 Billion and clearing price of 12.25%.
Commenting at the Completion Signing Ceremony:
Governor Babajide Sanwo-Olu, the Executive Governor of Lagos State, said:
“We really are appreciative of the investing community, whose sustained support of Lagos State continues to spur our resolve to deliver on a Greater Lagos. Our achievement of a very solid outing – in terms of the tenor, size and pricing of the Bond – positions Lagos State as a very active participant in the development of our domestic debt capital markets. We remain resolute to upholding our commitment to being the most responsible Issuer in the Nigerian capital markets.”
Dr. Rabiu Olowo, the Honorable Commissioner for Finance, Lagos State, said:
“We acknowledge the unwavering support of investors to the significant growth witnessed by Lagos State; given that the monies raised through our Bonds are being committed to the development of physical and social infrastructure, for the benefit of us all. Our partners, especially the issuing houses led by Chapel Hill Denham, have worked tirelessly with us to deliver another successful outcome on this landmark transaction. We also acknowledge the support received in the issuance process from the Federal Ministry of Finance, the Securities & Exchange Commission and Debt Management Office Nigeria.”
The new funding will be applied towards the execution of key infrastructure projects across the State.
Chapel Hill Denham acted as the Lead Issuing House/Bookrunner. There were fourteen other Issuing Houses on the transaction.
