Lagos completes N167 billion bond restructuring

The Lagos State Government on Wednesday said it had successfully completed the restructuring of its N167.5 billion Programme II, Series 1 and 2 Bonds.

In a statement by Akinkunmi Mustapha, the Commissioner for Finance, the government said the restructuring, which was approved by the Securities and Exchange Commission (SEC) last week, was achieved through the finalization of a process through which the state worked to reach an agreement with its bond creditors, on accelerating repayment terms.

Mr. Mustapha said the transaction, which would generate savings in excess of N40billion for the state over the next five years, was approved by 99.6 per cent of the state’s bondholders at an Extraordinary General Meeting a few weeks ago.

“We thank all our bond creditors for their continued support of the State Government, in a difficult market environment,” Mr. Mustapha said.
“This restructuring completed entirely through domestic capital markets, once again underpins the strength of the Lagos State credit story.

“Aside the significant cash savings generated, it also creates additional borrowing capacity to enable the state continue its investments in physical, economic and social infrastructure.”

The commissioner said much of the progress in Lagos State over the last 16 years could be attributed to funding through the debt capital market.

“Our bondholders’ support of this restructuring confirms the level of confidence the market has in the current administration and Lagos State did not partake in the recent bail-outs provided either by the Federal Government DMO or the Central Bank of Nigeria (CBN).”

He said the Chapel Hill Denham acted as Financial Adviser to the Lagos State on the restructuring transaction.