Lagos Completes Restructuring of N167.5bn Bond

Lagos state government yesterday said it had successfully completed the restructuring of its N167.5 billion Programme II, Series 1 and 2 Bonds.

In a statement, the State 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 finalisation of a process through which the State worked to reach an agreement with its bond creditors, on accelerating repayment terms.

He said the transaction which will 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.
Mustapha said: “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 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.

“Much of the significant progress in Lagos State over the last 16 years can 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),” the Commissioner said.

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