Lagos completes 167 billion Naira bond restructuring

Eniola Ajayi, Lagos

 Lagos State government says it has successfully completed the restructuring of its N167.5 billion Programme II, Series 1 and 2 Bonds.

The Commissioner for Finance, Mr. Akinkunmi Mustapha 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.

He said the transaction would generate savings in excess of N40 billion 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, this restructuring completed entirely through domestic capital markets, once again support 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, much of the significant progress in Lagos State over the last 16 years can be attributed to funding through the debt capital market,”the Commissioner said.

He further stated that, “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.