Lagos Wraps-up N100 Billion 10-Year Infrastructure Bonds

Lagos State has opened bids for the issuance of N100 billion in bonds under its hybrid instrument program of N1 trillion in debt to support the provision of infrastructure in the state.
According to financial advisors to the government, the debt issuance is scheduled to close on Friday, May 12, 2023.
The bond is a fixed-rate senior unsecured bond with a tenor of 10 years and a pricing range of 14.875 per cent to 15.250 per cent.
The issuance proceeds are expected to finance priority projects aimed at improving the state’s infrastructure and fostering economic growth, in line with the state’s Themes Agenda.
The issuance, targeted at high-net-worth individuals, has a minimum investment uptake of N10 million in multiples of N1 million.
It is part of the state’s efforts to raise capital to finance priority projects and boost economic growth.
The proceeds from the issuance will be used to finance priority projects, which are detailed in the pricing supplement and are aimed at improving the state’s infrastructure and fostering economic growth.
The issuance is being offered for a subscription via book-build, with a minimum subscription of NGN10,000,000 and multiples of NGN1,000,000 thereafter.
The bond will be listed on the Nigerian Exchange Limited and/or FMDQ Securities Exchange Limited. Applicable taxes shall apply unless otherwise exempt.
The sub-national domestic debt stock was N4.46 trillion by the end of 2021, which means it rose by N870 billion within one year.
However, according to the latest figures released by the Debt Management Office (DMO), Lagos State remained the most indebted state in the country, ahead of Delta and Ogun States.
As of the fourth quarter of last year, Lagos’ total outstanding debt stood at N807.21 billion; this was followed by Delta State with N304.25 billion and Ogun State with N270.45 billion.