The Lagos State Government has formally listed two massive bonds totalling N244.815 bn on the Nigerian Exchange Limited.
This was disclosed in the weekly market report of the NGX on Friday. The listings fall under the state’s ambitious N1tn Debt and Hybrid Instruments Issuance Programme.
Leading the charge in sustainable finance, the Lagos State Government listed its N14.82 bn Series 3 Green Bond. This five-year instrument, which has a maturity date of November 2030, carries a fixed interest rate of 16 per cent per annum. The Green Bond is designed to support environmentally friendly projects, signalling the state’s commitment to climate-resilient infrastructure.
Investors in this series can expect semi-annual coupon payments every May and November. The principal repayment is structured as an amortised redemption following an initial 24-month moratorium period from the issue date.
In a major move to secure long-term funding, the state also listed its N230bn Series 4 Fixed Rate Bond. This ten-year instrument offers a higher coupon rate of 16.25 per cent per annum and is set to mature on 20 November 2035.
The Series 4 bond features a specific Call Option, allowing the Lagos State Government to redeem the bonds at par after 60 months, subject to regulatory approvals and proper notice to bondholders. Similar to the Green Bond, this series includes a 24-month moratorium on principal repayment, after which the principal will be amortised.
The successful listing of these instruments was facilitated by a consortium of leading financial institutions. Chapel Hill Denham Advisory Limited served as the Lead Issuing House and Book Runner for both the Green Bond and the Series 4 bond. Other significant participants included Stanbic IBTC Capital, United Capital Plc, and Cardinal Stone Partners. Meristem Registrars and Probate Services Limited is managing the registers for these issuances.
