Lagos Free Zone Company, the first private free zone in Nigeria with a fully integrated deep seaport, is pleased to announce the successful issuance of a N25 billion 20-Year Series II Senior Guaranteed Fixed Rate Corporate Infrastructure Bonds Due 2042 (the LFZ Bonds) under a NGN50 billion Debt Issuance Programme.
LFZC is the infrastructure development subsidiary of Tolaram Group, the Singaporean conglomerate with more than 45 years of presence in Nigeria and business interests in consumer goods, infrastructure and fintech.
Lagos Free Zone is being developed as the largestport based economic zone in Nigeria and shall serve as the beacon of industrial development across Nigeria and West Africa.
Enterprises operating in Lagos Free Zone will benefit from various policy incentives underpinned by the legislative framework applicable for free zones in Nigeria.
In line with its vision statement which is to be “the preferred industrial hub in West Africa with worldclass infrastructure”, the Zone is equipped with a host of shared industrial infrastructure necessary for attracting investments from the leading trade partners of Nigeria.
Backed by an irrevocable and unconditional guarantee from InfraCredit, LFZC Series II Bond is accorded a ‘AAA’ long term credit rating by Agusto and Co. and GCR, reflecting the highest degree of creditworthiness for these bonds. The Series II Bond, a 20-Year Guaranteed Fixed Bond, was oversubscribed by institutional investors including ten domestic pension funds.
The transaction is the second 20-year non-FGN Bond issue in the Nigerian debt capital market and reinforces the appetite of domestic institutional investors for long tenured nonFGN instrument. The Series II Bond priced at a modest premium to the comparable FGN Sovereign Bond, provides a unique opportunity for pension fund managers, and other institutional investors to match their long-term liabilities with lowrisk, high yield assets.
