Nigeria’s commercial capital, Lagos State has launched the third series of its N500bn debt issuance programme which seeks to raise up to N100bn aimed at financing physical and social infrastructural development projects in the state.
The series III is a 10-year bond offered at 11.75%-12.25%, according the bond prospectus seen by BusinessDay. Minimum subscription is N10m with multiples of N5m thereafter, and the issue is rated Aa-(GCR) by Agusto & Co although the issuer which is Lagos State Government is rated A+(GCR).
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Lagos state launched the first series of N60bn in December 2016.
The second series of N85.14bn was issued in August 2017 in two tranches of N46.37bn, a 7-year bond at 16.75 percent as Tranche 1 which matures August 2024, and the Tranche 2 which is a 10-year bond of N38.77bn priced at 17.25 percent will mature in August 2027.
For the third series the Book Build commences Tuesday, December 31, 2019 and closes on Monday, January 13, 2020. The bonds are tax exempt.
Chapel Hill Denham will act as Lead Issuing House and Bookrunner while Commercio Partners Capital Limited will be joint issuing House.
