Lagos, Nigeria. Friday, December 20, 2021
Chapel Hill Denham, Nigeria’s and Africa’s leading investment bank, has completed the issuance of N137.3billion Series IV 10-Year 13.0% bonds for Lagos State which is due in 2031, under its third N500 Billion Debt Issuance Programme. Chapel Hill Denham was the lead issuing house and Bookrunner on this landmark transaction. The Series IV Bond is the largest bond issuance in the debt capital markets by a non-sovereign issuer. This issuance also marks the third 10-year bond instrument by a sub-national issuer – with the first and second being Lagos State – further extending the maturity profile of the State’s debt portfolio to match its investment in infrastructure which are long term assets.
The Book Build in respect of the Series IV offer commenced on November 19, 2021 and was completed on December 8, 2021. The Offer was well received with strong participation from a diverse range of investors including pension funds, corporates, fund managers, financial institutions, and high net worth individuals. At conclusion, the total value of bids represented a 1.2 times oversubscription of the intended N125 billion issuance. The Issue was launched with the State exercising its green shoe option at a clearing coupon of 13% with N137.3 billion in qualified bids.
The Lagos State Series IV Bond Issuance further reinforces Lagos State’s status as “Category A State” among the state governments in Nigeria and is also a testament of investor’s confidence in the State’s ability to responsibly utilize Bond proceeds as well as deliver on its infrastructure and socio-economic developmental objectives. The transaction is also a strong reflection of the resilience and depth of the domestic debt capital market.
Speaking on the landmark transaction, Mrs. Kemi Awodein, Managing Director, Investment Banking, Chapel Hill Denham Advisory Limited, explained that the issuance of the bond marks a significant step in the quest to support Lagos State Government to provide quality services and infrastructure in Lagos State.
Also speaking, on the completion signing ceremony, the Executive Governor of Lagos State, Babajide Sanwo-Olu said:
“We thank the investing community for their sustained and strong support of Lagos State and the efforts to improve the social and economic welfare of all Lagosians. Our ability to once again responsibly rely on the domestic debt capital markets to raise long term and patient capital demonstrates investor confidence in the effective delivery of our long term developmental objectives and we certainly do not take this confidence for granted. We will continue to uphold our commitment to remain the most responsible issuer in the Nigerian capital markets.”
In his remarks, the Honorable Commissioner for Finance, Lagos State, Dr. Rabiu Olowo said:
“We acknowledge the full support of the domestic capital markets in the significant growth reported by Lagos State over the last seventeen (17) years. We thank all our investors and the transaction parties for working with us to deliver another successful outcome on this landmark transaction. We also acknowledge the support received in the issuance process from the Ministry of Finance, the Securities & Exchange Commission and the Debt Management Office.”
Lagos State Government of Nigeria has a credit rating of A+ by Global Credit Ratings Co. and Agusto & Co.
About Chapel Hill Denham:
Chapel Hill Denham has a simple and powerful model focused on investment banking and investment management. Chapel Hill Denham Advisory is Nigeria and Africa’s leading independent investment bank. Chapel Hill Denham Management is Nigeria’s leading alternative asset manager. Our funds are focused on areas accretive to Africa’s and Nigeria’s economic development targeting sectors such as Infrastructure, Energy and Renewables, Real Estate, SMEs, Financial Inclusion, Healthcare and Education.