The Lagos State government yesterday said it has redeemed the N57.5 billion Bond.
The Bond was the second under the state’s initial N275billion Programme, which was launched on December 31, 2008.
At the time of its issuance, the Bond was the first sub-national issuance to be undertaken by way of a book build.
In accordance with the provisions of Section 236 of the Investments and Securities Act 2007 – requiring that the Register of Bondholders (‘the Register’) be closed 21-day preceding interest payments, the Register was closed on March 29 this year.
Subsequently, the Registrars effected payment of the principal and final coupon payment on April 19 this year.
Commenting on the redemption, Lagos State governor, Akinwunmi Ambode, said: “The payment of the Bondholders of the Programme 1, Series 2 bonds further strengthens the state’s position as a reputable borrower, as demonstrated by the prompt redemption of the Bonds on maturity.’’
The Commissioner for Finance, Mr. Akinyemi Ashade expressed optimism that the redemption of the N57.5billion would confirm the state as a credible borrower in capital markets and that investors will further illustrate their confidence in the state by investing in its upcoming Programme 3, Series 2 bond.
The latest redemption, according to him, shows that the state has now redeemed N107.5billion of outstanding bonds, creating headroom for further issuances to support the acceleration of the state’s investment in improved physical and social infrastructure and amenities.
He said the state remains committed to and is proud of its reputation as a most responsible issuer in the Nigerian capital markets.
Ashade confirmed that Chapel Hill Denham acted as the Lead Issuing House on the transaction.