Rating Release 

Agusto & Co. hereby affirms the “Aa” rating assigned to Lagos State Government’s ₦115 Billion Series I 10-Year 15.25% Fixed Rate Bond Due 2033, 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”, “LASG”, “the Issuer” or “the State”) ₦115 Billion Series I 10-Year 15.25% Fixed Rate Bond Due 2033 (“Series I”, “the Issue” or “the Bond”) under its ₦1 Trillion Debt and Hybrid Instruments Issuance Programme. The affirmation reflects the strong capacity of the State to continue to service the Series I Bond obligations (coupon and principal) through contributions from its Consolidated Debt Service Account (funded by internally generated revenue) and the Irrevocable Standing Payment Order (ISPO) approved by the Federal Ministry of Finance, which authorises monthly deductions from LASG’s share of centrally collected revenue as a first-line charge.

On 23 May 2023, the Lagos State Government issued a ₦115 billion Series I 10-Year 15.25% Fixed Rate Bond to finance various infrastructure projects across its Ministries, Departments and Agencies (MDAs). The Series I Bond carries a fixed coupon rate of 15.25%, payable semi-annually over its ten year tenor, while the principal is being amortised bi-annually following the expiration of a 30-month moratorium from the Issue date. As outlined in the Trust Deed, Lagos State reserves the sole discretion to call the Bond, either in part or in whole, after 60 months (five years) from the Issue date, subject to providing not less than 30 days’ irrevocable notice to the Bondholders.