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Lagos State Government Seals N85bn bond to boost Int’l Airport Road project

The reconstruction of the degraded Murtala Muhammed International Airport road is to commence in a matter of weeks, as Lagos State on Monday, sealed an N85.14 billion bond issuance at the Nigerian capital market, putting it on a sound financial footing to deepen investment in infrastructure development. Other projects likely to benefit from the bond deal are the Adiyan Water Work II, the Red Line Rail Project and the ongoing expansion of Lagos-Badagry Expressway from four to ten lanes.

Governor Akinwunmi Ambode had sought and secured the approval of the Federal Government to reconstruct the Murtala Muhammed Airport Road, which for many years, has constituted an embarrassment to Nigeria, being a major gateway into the country. The road is to be developed into a ten-lane road, befitting an international road.

Akinyemi Ashade, the state commissioner for finance, said yesterday that the bond, being series 2 of the N500 billion third bond issuance programme of the Lagos State Government, was issued in two tranches on Friday, 12 August 2017.

The first tranche of N46.37 billion, representing 75 percent of the deal, would be maturing in August 2024 while the second of N38.77 billion, representing 25 percent, is due for maturity in August 2027. Both are under the N500bn third debt issuance programme of the state government. The bond was issued on Friday, August 12 by way of book building.

The N85.14 billion series 2 issuance is the largest bond issuance in Nigerian capital markets in the last four years and the second largest issuance ever.

Ashade said it was the first time any non-FGN issuer in Nigeria has issued out a ten-year bond, thereby extending the non-sovereign yield curve. “We value the reputation we have earned as the most responsible issuer in the Nigerian capital markets and thank everyone who has worked with us to deliver a successful outcome,” said Ashade.

The commissioner quoted the state governor, Akinwunmi Ambode, as saying that “in challenging market conditions, we are encouraged by the sustained support that the Lagos State credit story has received from investors, for which we are grateful.

“This support is critical to our quest to improve the physical and social infrastructure in the state and lift the economic and social welfare of all citizens of Lagos State.”

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