NGX Lists Lagos Free Zone’ N25bn Infrastructure Bond On Platform

Nigerian Stock Exchange (NGX) Limited has approved the listing of Lagos Free Zone (LFZ)’ N25 billion 20-year, 13.25 per cent infrastructure bond on its platform.

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 had on August 8, 2022, through LFZ Funding, SPV Plc’s listed its first issuance of N25 billion, 20-Year 13.25 per cent Series 2 Senior Guaranteed Fixed Rate Infrastructure Bonds Due 2042 under the N50 billion bond issuance programme.

Speaking at the listing yesterday, Divisional Head, Capital Markets, NGX, Jude Chiemeka applauded the company on the milestone transactions, which is a testament to the capacity of the Nigerian debt market as a veritable source of domestic capital for infrastructural developments in Nigeria.

According to Chiemeka, with the second issuance of the N25 billion series 2 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, Dinesh Rathi, stated that “this bond is a part of N50 billion bond programme, 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.”