Lagos Free Zone Finalizes 20-Year Series II N25 Billion Fixed Rate Infrastructure Bond

Kayode Tokede

Lagos Free Zone Company (LFZC), the first private free zone in Nigeria with a fully integrated deep water port, has announced the successful issuance of N25 billion Series II Fixed Rate Corporate Infrastructure Bonds maturing in 2042 (LFZ bonds) under a 50 billion naira debt issuance programme.

LFZC Chief Financial Officer (CFO), Mr. Ashish Khemka, during a press briefing in Lagos, said, “This is a historic transaction for us at Lagos Free Zone Company and it is a testament to the ability of the Nigerian debt market as a true source of domestic capital for infrastructure development in Nigeria.

“The response to this bond program further reinforces our commitment to realizing our vision and thereby enhancing Nigeria’s competitive positioning with our continued focus on the metrics of the ease of doing business. LFZ further highlights Nigeria as a key industrial hub on the West African coast and ideally orients itself in anticipation of the impending single market regime under the AfCFTA.

Peaking, CEO of InfraCredit, Mr. Chinua Azubike, said, “Working with Lagos Free Zone Company on this landmark transaction has been exciting. It further demonstrates our commitment to inclusive access to long-term local currency financing for infrastructure development. Interestingly, LFZC has set a new benchmark in the Nigerian domestic debt capital market with the second issuance of the N50 billion Series 2 bond, as the first 20-year corporate infrastructure bond in Nigeria, lengthening the corporate bond yield curve and strengthening the outlook for the Nigerian. Companies to raise long-term financing on the local market. LFZC bonds validate the appetite of national pension funds and other institutional investors for financing viable long-term infrastructure assets. We will continue to partner with all relevant stakeholders to implement new strategies to unlock domestic capital for infrastructure financing, in addition to building quality asset classes to diversify investors’ investment portfolios local institutions.

Also commenting on the transaction, Managing Director of Stanbic IBTC Capital Limited, Funso Akere, said: “Stanbic IBTC Capital, FBNQuest Merchant Bank and Radix Capital Partners are delighted to have advised LFZC on this landmark infrastructure bond issue of 20 years, which is a testament to the depth and liquidity of the Nigerian debt capital markets and aligns with the pension fund industry’s growing demand for quality long-term assets.

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