Text size:

  • Small
  • Normal
  • Large

Optimism for Nigeria spurs Lagos bond sale

What's Up: Nigeria's Lagos state sold its biggest bond issue of 80 billion naira to fund infrastructure projects.

Nigeria's Lagos state, home to the country's commercial capital and sub-Saharan Africa's biggest city, sold its biggest bond issue of 80 billion naira to fund infrastructure projects.

The seven-year notes were priced with a 14.5 percent coupon on Wednesday, the highest end of a revised range guidance, said Bolaji Balogun, chief executive of Lagos-based lead manager Chapel Hill Denham.

"In tricky market conditions, the book was slightly oversold, clearing the market in what was the single-largest issuance ever by a Nigerian state or sub-national," he said.

Proceeds from the sale will fund infrastructure projects including a rail line to help ease traffic congestion, said the Lagos governor Babatunde Fashola.

The state first issued debt in 2008, selling 50bn naira of five-year securities with a 13 per cent coupon. It concluded a 50bn naira, seven-year bond sale in April 2010 at a 10 per cent coupon.

The smallest of Nigeria's 36 states in terms of size, Lagos is the most densely populated, with about 22 million people living in the metropolitan hub, up from about 17 million in 2006, according to the state government.

The regional government is investing in infrastructure to meet the needs of a population it estimates is increasing at 3 per cent a year.

The sale comes after borrowing costs for Nigeria's federal government dropped after JPMorgan Chase said from last month that it would add the country's bonds to its GBI-EM index series. Barclays will add the debt of Africa's biggest oil producer and most populous nation to its own emerging market indexes in March.

The yield on the 16.39 per cent federal government naira debt due 2022 has dropped 81 basis points to 12.27 per cent this month, according to data compiled by the Lagos-based Financial Markets Dealers Association.

Back to the top

More articles

Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Above, the private pool of Ocean Heights' five-bedroom penthouse flat. Courtesy Christie’s International Real Estate

In pictures: Penthouse flat is height of Dubai luxury living

A five-bedroom penthouse in Ocean Heights in Dubai Marina is on sale for Dh25 million and comes with a private pool and an unparalleled view of Dubai.

 The cooling towers of the Temelin nuclear power plant near the Tyn nad Vltavou in Czech Republic. The country wants to continue expanding nuclear energy capacity despite cancelling a tender to build two new units. David W Cerny / Reuters

In pictures: Best business images for the week to April 17, 2014

Here are some of the best business images for the week to April 17, 2014.

 Three generations of the Hakimi family tend to their stall Crawford Market in Mumbai. Subhash Sharma for The National

In pictures: Shopper’s delight at Crawford Market in Mumbai

Crawford Market is an old British-style covered market dealing in just about every kind of fresh food and domestic animal imaginable. Later on renamed Mahatma Jotirao Phule, the market remains popular among locals and visitors by its old name, taken from Arthur Crawford who was the first municipal commissioner of the city.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.


To add your event to The National listings, click here

Get the most from The National