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Lagos State Govt’s N4.85bn Environmental Note Not Listed On NSE

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The Nigerian Stock Exchange (NSE) says the Lagos State Government’s N4.85 billion, 15.75 per cent Series one, Tranche B, Environmental Note is not listed on its platform for trading.

The NSE in a press statement said: “The attention of the NSE has been drawn to certain media publications with respect to the Lagos State Government’s N4.85 Billion, 15.75 per cent Series one, Tranche B, Environmental Note (Municipality Note) and the alleged default in repayment of the coupon and principal on the Municipal Note due on March 5, 2019.” 

The Exchange stated that these publications if not addressed has the likelihood of dampening investors’ confidence in the Nigerian capital market. It added that information garnered by the Exchange in the wake of the media publications reflects that the Municipality Note was issued under a N50 billion Medium Term Note Programme by Municipality Waste Management Contractors Limited, a privately owned company promoted by Visionscape Sanitations Solutions Limited.  NSE said that the Municipality Note was not listed on its platform, saying that as part of its regulatory oversight to safeguard investors in the Nigerian capital market, the Exchange takes steps to satisfy itself that the financial and other advisers have done due diligence on all financial instruments listed on the Exchange in order to ensure that the obligations attached to those instruments are met as and when due.

According to NSE, as part of the requirements for the issuance and the listing of similar debt instruments, the Exchange requires that a Guarantee on the revenue of the State Government is issued, in addition to an approval of the State House of Assembly to back the Notes. The established requirements are necessary to ensure that the risk of default on such instruments when listed on the Exchange are reduced to the barest minimum.

NSE assured of its commitment to maintaining a fair, efficient and transparent market that guarantees the protection of investors’ rights.   

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