Lagos Restructures N167.5bn Bond Series (By Akinrinde, Ibukunoluwa Jeremiah)

Email: ibukunoluwaakinrinde@gmail.com

Twitter: @IbukunoluwaIbk

The Lagos State Government’s (LASG) debt restructuring programme of N167.5 billion Programme II, Series 1 and 2 bonds, which was approved by the Securities and Exchange Commission (SEC) has been completed. The completion was possible through the LASG’s agreement with its bond creditors on accelerating repayment terms. This new development, and the non-participation of the LASG in the recent FG/CBN bail-outs, is indicate the strength of credit story over the last 16 years and the level of trust the market has in the current administration.

The expectation is that with this bond restructuring programme, the LASG would save an excess of N40 billion in 5 years. This, therefore, implies that (at this newly restructured bond terms) the state government has more capacity to borrow for the financing of its planned CAPEX — physical, economic and social infrastructure — which would have an expansionary effect on the Lagos economy and trickle down to the citizens.

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