LFZC N25bn Infrastructure Bond To Address Nigeria’s Challenges – FMDQ

BY OLUSHOLA BELLO, Lagos

FMDQ Securities Exchange Limited, has said LFZC Funding SPV PLC N25 billion Series 2 Fixed Rate Bond will address some of the infrastructural challenges in the nation.

The Exchange stated this at the listing of the Bond under LFZC Funding N50 billion Bond Issuance Programme on its Platform. This issuance, by LFZC Funding SPV Plc, has broken a record as the corporate bond issued with the longest tenor of 20 years in the Nigerian debt markets.

LFZC SPV is a special-purpose vehicle set up by Lagos Free Zone Company to raise finance through the listing of debt securities, which would be used to boost its business expansion exercise and to restructure the company’s debts over a specified period.

The managing director, FMDQ Exchange, Ms. Tumi Sekoni, said that this is yet another highly exemplary and indeed, positive step towards addressing some of the infrastructural challenges in the nation.

She further stated that FMDQ Exchange, being an Exchange with a passion for infrastructure and sustainable development in Nigeria, has again demonstrated its unflinching commitment in this regard by providing due diligence and availing its credible and efficient platform for the listing and trading of debt securities.

The chief executive officer, Lagos Free Zone Company, Mr. Dinesh Rathi stated, “this is a milestone transaction for us at Lagos Free Zone Company and it is a testament to the capacity of the Nigerian debt markets as a veritable source of domestic capital for infrastructural development in Nigeria.

“The response to this bond programme further strengthens our commitment to realise our vision and thereby enhance Nigeria’s competitive positioning with our continuous focus on Ease of Doing Business parameters and world class infrastructure, embedded with all modern facilities.”

Chief executive of Stanbic IBTC Capital Limited, Mr. Funso Akere, mentioned that “the Series 2 Bond Issuance was 139 subscribed and attracted wide participation from pension funds who have a growing demand for quality long-dated debt instruments.

cess of the transaction demonstrates investors’ confidence in Lagos Free Zone Company and the free zone’s impact on socio-economic and industrial development in Nigeria. We expect this should encourage other corporates to tap the domestic capital markets to raise local currency funding for viable infrastructure projects.”

According to the chief executive officer, InfraCredit, Mr. Chinua Azubike, “the success of special economic zones in Nigeria is critical to accelerating industrialisation, attracting local and foreign direct investment, job creation, and inclusive growth, however one key barrier we have unlocked with our guarantee, is enabling companies like Lagos Free Zone Company access up to twenty (20) year local currency finance from domestic pension funds at scale to match the long-term lifecycle of infrastructure investment needed to develop these zones, it is evident that local pension fund investors are playing an important role in supporting private sector led infrastructure development in Nigeria.”