Lagos to Raise N87.5bn from Capital Market

Ayo Gbeleyi, commissioner for Finance, Lagos State has said that the state government has received clearance from the Securities and Exchange Commission (SEC) to open a seven-year N87.5 billion bond.

In a statement yesterday in Lagos, Gbeleyi, said the bond would mature in November 2020.

According to the statement, the bond is the final tranche of the state government’s N167.5 billion  2nd Debt Issuance Programme launched in November 2012.

“The bond is rated A+ by Augusto & Co. and AA- by Global Credit Ratings,” Gbeleyi said.

He said that the bond would focus on poverty eradication and sustainable economic growth through infrastructure renewal and development.

Gbeleyi said that the proceeds would be used for completion of ongoing infrastructure projects in the state to enhance the living standards of Lagosians.

He noted that the bond would serve as additional funding for various projects in the state such as Lagos-Badagry Expressway, the Blue Line Metro Rail and the Adiyan Water Works project.

“Others are Ayinke House, to buy back the entire shareholding of the Lekki Concession Company, concessionaire of the Lekki-Epe Expressway, and the Shoreline Protection Works,” the commissioner said.

It was gathered that the bond is to be issued by way of a book build, would open next week to qualified investors like fund managers and insurance companies, among others.

Chapel Hill Denham is the lead book runner to the bond.