Rating Release 

Agusto & Co. hereby affirms the “Aa “rating assigned to the Lagos State Government’s ₦38.7 billion 10-Year 17.25% Bond Due 2027 (Series II Tranche II) and ₦5.34 billion 9  7/12  Year 15.85% Bond Due 2027 (Series II Tranche IV), with a stable outlook. 

The rating expires on 30 September 2027. 

Agusto & Co. hereby affirms the “Aa “rating assigned to the Lagos State Government’s (“Lagos State”, “Lagos”, “LASG”, “the State” or “the Issuer”) ₦38.7 billion 10-Year 17.25% Bond Due 2027 (Series II Tranche II) and ₦5.34 billion 9  Year 15.85% Bond Due 2027 (Series II Tranche IV) under the ₦97.3 billion Series II Tranches I – IV Bonds. The rating affirmation underlines the continuous fulfilment of the Irrevocable Standing Payment Order (ISPO) authorising the monthly deduction of ₦1 billion from the State’s share of centrally collected revenue (statutory allocation) into a dedicated Sinking Fund Account (SFA) towards meeting the Series II Bond obligations.

The Lagos State Government issued four bonds (Tranches I–IV) totalling ₦97.3 billion between August 2017 and February 2018 to finance various infrastructure projects in the State. In February 2021, LASG exercised a call option to fully redeem the ₦46.3 billion 7-year 16.75% Bond Due 2024 (Tranche I) and the ₦6.91 billion 6  Year 15.60% Bond Due 2024 (Tranche III). Following the redemption of the Tranches I and III Bonds, the monthly internally generated revenue (IGR) contribution was discontinued, as the ₦1 billion ISPO monthly deductions from the State’s share of statutory allocation became sufficient to cover the obligations of the Tranches II and IV Bonds.