La­gos State raises N47bn from bond of­fer­ing to fund in­fra­struc­ture

Financial Nigeria Magazine - - Finance -

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.

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