Rating Release
Agusto & Co. hereby affirms the “Aa“ rating assigned to the Lagos State Government’s ₦137.3 Billion Series IV Bond
The rating expires on 30 September 2024.
Agusto & Co. hereby affirms the “Aa“ rating assigned to the Lagos State Government’s (“Lagos State”, “LASG”, “the Issuer” or “the State”) ₦137.3 Billion Series IV 10-Year 13% Fixed Rate Bond Due 2031 (“Series IV”, “the Issue” or “the Bond”). The Series IV Bond which attracts a fixed coupon rate of 13% is being repaid semi-annually over the ten-year tenor of the Bond, while the principal enjoys a moratorium of 24 months from the Issue date and subsequently will be amortized bi-annually over the remaining eight years. The Bond proceeds were used to refinance a Bridge Facility (used to redeem three previous bonds with higher coupon rates) and fund the construction of roads in the State. In line with the Trust Deed, Lagos State reserves the sole discretion to redeem all or part of the outstanding bond, after five years from the issue date provided not less than 30 days’ notice is given to the bondholders.
The opinions expressed in this rating release do not represent investment or other advice and should therefore not be construed as such. Visit www.agusto.com for further information.