InfraCredit, a specialised infrastructure credit score assure establishment, has introduced its assure of Lagos Free Zone Firm’s (LFZC) N20 billion 20-Yr Sequence II Senior Assured Fastened Price Infrastructure Bonds Due 2042 (the LFZC Sequence II Bond) beneath a N50 billion Debt Issuance Programme.
Leveraging the irrevocable and unconditional assure of InfraCredit, the LFZC Sequence II Bond reinvigorates the benchmark set by LFZC Sequence I Bond, because the second 20-year non-FGN Bond challenge within the Nigerian debt capital marketplace for the event of an industrial hub in Nigeria.
In accordance with InfraCredit, enterprises working within the Lagos Free Zone will profit from varied coverage incentives underpinned by the legislative framework relevant totally free zones within the nation.
Backed by an irrevocable and unconditional assure from InfraCredit, LFZC Sequence II Bond is accorded ‘AAA’ long-term credit standing by Agusto and Co. and GCR, reflecting the very best diploma of creditworthiness for these bonds.
The Sequence II Bond, a 20-Yr Assured Fastened Bond, was oversubscribed by 165% from institutional buyers together with ten home pension funds. The transaction is the second 20-year non-FGN Bond challenge within the Nigerian debt capital market and reinforces the urge for food of home institutional buyers for lengthy tenored non-FGN devices.
The Sequence II Bond priced at a modest premium to the comparable FGN Sovereign Bond, offers a novel alternative for pension fund managers, and different institutional buyers to match their long-term liabilities with low-risk, excessive yield property.
Talking on the transaction, the Chief Finance Officer of LFZC, Ashish Khemka acknowledged: “This can be a milestone transaction for us at Lagos Free Zone Firm and it’s a testomony to the capability of the Nigerian debt market as a veritable supply of home capital for infrastructural improvement in Nigeria. The response to this bond program additional strengthens our dedication to comprehend our imaginative and prescient and thereby improve Nigeria’s aggressive positioning with our steady give attention to Ease of Doing Enterprise parameters.
“LFZ additional underscores Nigeria as a compelling industrial hub inside the West African coast and ideally orients itself in anticipation of the upcoming single market regime beneath AfCFTA. We’re significantly excited by the arrogance demonstrated by pension fund managers and different institutional buyers at this milestone challenge and we recognize the workforce at InfraCredit, StanbicIBTC Capital and different events to the transaction for this novel construction, which helps to de-risk the transaction and aligns the curiosity of various stakeholders”.
In accordance with the CEO of InfraCredit, Chinua Azubike, “That is one more milestone transaction, and we’re happy to have supported the profitable issuance of this Sequence II Bonds following the maiden issuance in 2021, which is especially important as a consequence of its improved pricing, unprecedented scale and huge attain of home institutional buyers.
“The success of particular financial zones in Nigeria is important to accelerating industrialization, attracting native and international direct funding, job creation, and inclusive progress, nonetheless one key barrier we now have unlocked with our assure, is enabling firms like LFZC entry as much as 20 12 months native forex finance from home pension funds at scale to match the long-term lifecycle of infrastructure funding wanted to develop these zones, it’s evident that native pension fund buyers are taking part in an necessary function in supporting non-public sector led infrastructure improvement in Nigeria.
“This Sequence 2 Bonds has additional deepened the debt capital market, the oversubscription revalidates the urge for food of home pension funds and different institutional buyers in financing viable long run infrastructure property.”