in line with the consistency of previous administrations in the area of infrastructural development and the determination of the present administration to continue the laudable trend, Lagos state government has launched its third series N500 billion bond issuance programme,
The state government seeks to raise N100 billion.The offer to raise N100 billion opened on Tuesday 31st of December 2019 and will close on Monday, January 13, 2020.
The funds generated would be earmarked for swift development of physical and social infrastructural development projects in the state in line with the agenda of the current administration.
Meanwhile, the senior unsecured bond issue, which has a 10-year tenor with a fixed rate, will be due for amortized redemption after the expiration of a 24-month moratorium. The offer holds a minimum subscription of N10 million with multiples of N5 million thereafter, Nairametrics reports.
The bond, listed both on FMDQ Securities Exchange and the Nigerian Stock Exchange, is to pay coupon rate between 11.75% – 12.25% and the proceeds from investing in the bond exempted from tax. The bond holds an Aa rating implying that the risk of default on payment by the issuer is low.
However, the Lagos State Government reportedly expressed its delight to continue to access the domestic debt markets, given the very strong support garnered over the last twelve (12) years from the investor community. It added that the state had been able to access much needed complementary funding, which had been used to augment the state’s revenues and provide the critical support required to accelerate and actualize the provision of physical and social infrastructure/amenities.
conversely, the Lagos State Governor Babajide Sanwo-Olu, recently signed into law a budget of N1.168 trillion for 2020, assuring residents that there would be accountability and transparency in the implementation of the approved financial plan.
He also promised that his administration would use the sate’s resources judiciously to ensure that the budget is implemented up to about 100% performance.