In furtherance of its sustained drive to boost infrastructure and other critical projects required to consolidate on the improved performance of the state’s economy, the Lagos State Government on Friday listed two bonds totalling N244.815bn on the Nigerian Exchange Limited (NGX).
The NGX gave this hint in its weekly market report saying that listings fall under the state’s N1trn Debt and Hybrid Instruments Issuance Programme (HIIP).
Specifically, the report indicated that Lagos State Government listed a N14.82bn Series 3 Green Bond on the local bourse for investors.
According to the NGX, the Series 3 Green Bond auctioned to support environmentally friendly projects, is a five-year instrument with a maturity date of November 2030 and carries a fixed interest rate of 16 per cent per annum.
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Investors in this debt instrument can expect semi-annual coupon payments in May and November while the principal repayment is structured as an amortised redemption following an initial 24-month moratorium period from the issue date.
In addition, the Lagos State Government also listed its N230bn Series 4 Fixed Rate Bond with a higher coupon rate of 16.25% per annum and is scheduled set to mature on 20 November 2035.
According to the report from the NGX, the Series 4 bond features a specific Call Option, which allows the government to redeem the bonds at par after 60 months, subject to regulatory approvals and proper notice to bondholders. Just like the Green Bond, the Series 4 bond includes a 24-month moratorium on principal repayment, after which the principal will be amortised.
The report reflected that the listing of the debt instruments was facilitated by a consortium of financial institutions, including Chapel Hill Denham Advisory Limited, which served as the Lead Issuing House and Book Runner for both the Green Bond and the Series 4 bond; Stanbic IBTC Capital, United Capital Plc, and Cardinal Stone Partners. Meristem Registrars and Probate Services Limited is appointed to manage the registers for the two issuances.
