Lagos State Government ’s N 137.3 bn Series IV Senior Unsecured Bonds (2021-12)
- Lagos State Government of Nigeria
- Year : Dec 2021
Summary
Coupon and principal repayment obligations on the Bonds will be serviced through monthly transfers into the Sinking Fund Account from the Consolidated Debt Service Account (“CDSA”) and Irrevocable Standing Payment Order (“ISPO”) (approved by the Federal Ministry of Finance, Budget and Planning). Monthly funding (N528.1m from CDSA and N1bn from ISPO) will commence immediately upon the Issue of the Bonds and subsist for 24 months of principal moratorium. Thereafter, monthly funding from the CDSA will increase to N1.4bn and will augment the ISPO for servicing both coupon and principal repayments on a semi-annual basis.
Additional Information
The principal repayment will be on an amortising basis, payable semi-annually after the second anniversary of the Issue or upon a call, at par. The Series IV Bonds are callable at par by the Issuer after five years on any coupon payment date, subject to the Issuer obtaining prior regulatory approval and the issuance of requisite notice period to Bondholders. The Positive Outlook reflects GCR’s expectation that Lagos State will continue to report strong growth in IGR, despite the setbacks occasioned by the COVID-19 pandemic. This supports GCR’s expectation of an improved financial profile over the outlook period if gearing does not increase further.
