NGX Lists LFZ N25bn Infrastructure Bond

The Nigerian Exchange Limited, has listed the Lagos Free Zone (LFZ)’s N25 Billion 20-year, 13.25 per cent Series II Senior Guaranteed Fixed Rate Infrastructure Bond on its platform.

Lagos Free Zone (LFZ) is the infrastructure development company of the Tolaram Group and the first private free trade Zone in Nigeria. The Lagos Free Zone was established to provide organisations access to the full potential of the West African market by offering access to top-tier facilities and services that enable ease of doing business.

Recall that the Company on August 08, 2022, through LFZC Funding SPV Plc’s listed its first issuance of N25 billion, 20-Year 13.25 er cent Series II Senior Guaranteed Fixed Rate Infrastructure Bonds Due 2042 Under the N50 Billion Bond Issuance Programme.

Speaking closing gong ceremony to commemorate the listing of the bond yesterday in Lagos, Divisional head, Capital Markets, NGX, Mr. Jude Chiemeka applauded the company on the milestone transaction, which is a testament to the capacity of the Nigerian debt market as a veritable source of domestic capital for infrastructural developments in Nigeria.

He also commended the team at InfraCredit-the guarantor of the transaction, towards de-risking the transaction; the stockbrokers to the issue, CSL Stockbrokers; the Lead issuing house/book-runners, Stanbic IBTC Capital; the Joint issuing houses- FCMB Capital Markets Limited, FSDH Capital Limited and Radix Capital Partners and, other professional parties for their dedicated efforts towards the actualization of this successful offering.

According to Chiemeka, with the second issuance of the N25 billion series II bond, the first 20-year corporate infrastructure bond in Nigeria, LFZC has established a new standard in the domestic debt capital market of the country.

“It has elongated the yield curve on corporate bonds and improved the prospects for Nigerian corporates to raise long-term financing in the market.

The LFZC Bonds confirm the desire of institutional investors and domestic pension funds to finance viable long-term infrastructure assets.”

Chiemeka encouraged LFZC and other private issuers alike to utilise the NGX platform in meeting future financing needs to support their business expansion in line with their overall corporate strategy.

The CEO of LFZC, Mr. Dinesh Rathi stated that “this bond is a part of N50 billion bond program, which we had initiated last year and this current listing entails the series two of N25 billion long term bond, a 20 year fixed rate instrument and the longest tenure bond in Nigeria’s debt capital market”.

He noted that the bond recorded 1.7 times over subscription as this clearly reflects the appetite for a long term note paper within the Nigerian debt capital market.

He added that “this financing will further strengthen our commitment to realize our vision and thereby enhance Nigeria’s competitive positioning with our continuous focus on Ease of Doing Business parameters.”

The CEO, InfraCredit, Mr. Daniel Mueller, said: “It has been exciting working with Lagos Free Zone Company on this landmark transaction. It further demonstrates our commitment towards inclusive access to long term local currency finance for infrastructure development. “The LFZC Bonds validates the appetite of domestic pension funds and other institutional investors in financing viable long-term infrastructure assets.”