Issuer Overview

  • The Issuer; Lagos State, is Nigeria’s financial, commercial and industrial capital which contributes 26% to the country’s Gross Domestic Product
  • It is home to over 65% of Nigeria’s businesses –2,000 manufacturing companies and over 200 financial institutions. It is the fastest growing city in Africa and the 7th fastest in the world.
  • The state’s internally generated revenue (IGR) accounts for 70% of its total revenue with majority of the IGR gotten from taxes (as at Q2 2017).
  • The State is a frequent bond issuer. In 2008, the State launched its 1st Bond Issuance Programme, the N275 Billion Programme and successfully issued two tranches of Bonds. In 2012, the State launched its 2nd Bond Issuance Programme – the N167.5 Billion Programme under which it issued two tranches of Bonds


    Execution Background

  • In July 2017, Lagos state returned to the local debt markets to issue the 2nd series of its 3rd Bond Program.
  • It successfully raised N85.14 billion despite the depressed market conditions via a two tranche issue of 7 and 10 year bonds.
  • The Series 2 Bonds were issued under a NGN500 billion Third Bond Issuance Program
  • The issue (Series 2 Bonds) was initially aimed at raising an aggregate sum of up to NGN100 billion.
  • The book build period opened on 20th July 2017 and closed on 2nd August 2017.
  • Pricing was at 16.75% for 7 year and 17.25% for 10 year bond.


    UCML’s Role and Key Achievements

  • UCML acted as Joint Issuing house/ Book runner for Lagos State on the transaction
  • In a crowded field of 11 issuing houses, UCML achieved the following ranking on the entire Series 2:
    • 1st in terms of submitted bids of N14.3bn
    • 2nd in terms of accepted bids of N13.3bn (only N365m behind 1st place and N3.3bn ahead of 3rd place)
    • 1st in terms of accepted bids from PFAs
    • 1st in terms of accepted bids for Tranche II (10 year bond)
  • The performance of UCML on the transaction confirms our superior distribution capacity when compared to our peers.
  • It also highlights UCML strong relationship with the PFA community whose investment is critical in ensuring success of any large bond issue.

    View Transaction Terms
  • - Contact Us

    We'll have someone on hand to respond to your enquiries.

    Our Location

    7,Fatai Durosinmi Etti Crescent, Off Ligali Ayorinde Street, Victoria Island ,Lagos.

    Social Media

    - Write Us