Lagos State raises N47bn from bond offering to fund infrastructure
The Lagos State Government has raised N47 billion ($154.5 million) from a bond offering to help finance basic infrastructure in Nigeria's commercial capital.
Governor Akinwunmi Ambode said the bonds, which mature in 2023, have a coupon rate of 16.5 percent and was the first tranche of a N500 billion debt issuance programme approved by the state's parliament in September last year. The governor said the state had offered N60 billion in the entire bond offering, but sold 80 percent of the bonds despite the continued challenges in the economy and difficult market conditions.
In April last year, Lagos State agreed to repay N167.5 billion worth of bonds ahead of schedule in an effort to increase the state's borrowing capacity amidst a decline in revenues from the Federation Account caused mainly by low oil revenue. 18 months in Sub-Saharan Africa as investors adjust their investment strategies.
In its third instalment of the Africa Attractiveness programme published last month, EY said investors are likely to concentrate on countries with better growth prospects.
Michael Lalor, Africa Business Centre Leader at EY, said investor sentiment towards Africa as an attractive investment destination is likely to remain somewhat softer over the next few years.