Lagos State

  • In Jan 2008 the Lagos State Government (“Lagos State”) embacked upon a aggressive infrastructural development. it deployed  its robust IGR, statutory allocations and the proceeds of N275 Billion Bond issuance programme to accelerate the pace of development in the state.
  • The tranche II of the N275 Billion Bond Issuance Programme was the first ito be issued without an Irrevocable Standing Payment Orders (ISPO) and the first to be undertaken by way of a Book Build in Nigeria.
  • The 2ndseries of the N275Billion bond issue received tremendous interest with the book closing at a market clearing rate of 10% per annum and bids totaling N174.35 Billion, an over-subscription of over 249%. The tranche II was upsized to N57.5 Billion. The issue has the highest level of subscription for bond issues so far in Nigeria.
  • The book attracted very strong orders and was well distributed across institutional investors, with 47% taken up by Banks, 24% by Pension Fund Administrators (PFAs), 11% by Asset Managers (including Discount Houses), 1% by Insurance companies and 17% by other investors like mortgage houses, IT companies, stockbroking firms and trustee companies, from the domestic market in Nigeria.
  • The 7-year Bond was assigned a domestic rating of “A+” by Agusto & Co.
  • Proceeds from the Bond Issue Programme were utilised to finance selected infrastructure and ongoing capital projects within Lagos State – including upgrading the Lagos-Badagry Expressway, into a 10-lane International highway featuring pedestrians walkways, bus routes and rail lines, funding of light Rail Mass Transit Scheme and the Eko Atlantic City Project which is an “An Autonomous Urban Centre”.
  • The Bond also benefited from the incentives granted by the Federal Government of Nigeria and the CBN – including being tax exempt and being eligible to qualify as a liquid asset for local banks.


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