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LASG Raises N137.3bn Capital Market Bond To Address Infrastructure Deficit



Governor Babajide Sanwo-Olu, on Monday, presided over the ceremony where necessary documents required by the Securities and Exchange Commission (SEC) to facilitate the issuance of 13 per cent fixed rate bond were signed by the State’s Attorney General, issuing parties and trustees of the funds.

The event marked the third time Lagos Government would be issuing a long-tenure bond of 10 years (2021-2031), bringing to a total value of N377.715 billion bond issued from the Lagos State’s Series IV N500 Billion Debt Issuance Programme.

The State set out to raise N125 billion from the capital market but closed the bids with N137.3 billion, following oversubscription. The development, Sanwo-Olu said, demonstrated a “strong response” from the investing community and testified to confidence of investors in the State’s ability to deliver on its infrastructural and socio-economic developmental objectives, while meeting repayment obligations.

The Governor said proceeds from the bond would be used to finance key infrastructure projects in healthcare, environment and road construction, including the 10-km Regional Road in Eti Osa, six-lane Lekki-Epe Expressway, Ijeododo Road in Alimosho and Oba Sekumade Road in Ikorodu, among others.

Sanwo-Olu said the iconic projects for which the funds would be earmarked would contribute to a better quality of living for the residents, while also creating a more enabling environment for commercial and economic activities.

He said: “Lagos once again marks another milestone in the domestic debt capital markets, with the issuance of the largest bond ever by a sub-national Government in Nigeria. The signing ceremony finalises the issuance of N137.3 billion bond at 13 per cent fixed rate in our Series IV Bond Issuance under the N500 Billion Fourth Debt Issuance Programme.

“We set out to raise up to N125 billion, but we closed the book with bids totalling N137.3 billion. This is a strong response from the investing community to our administration’s debut bond issuance. This humbling achievement is a testament to continued investors’ confidence in the State’s ability to deliver on its infrastructural and socio-economic developmental objectives, and also to meet repayment obligations.

“In line with our vision to build a Greater Lagos, proceeds from this bond will be used to finance infrastructure projects, primarily in roads, environment and healthcare. These projects include 10-km Regional Road in Eti Osa, six-lane Lekki-Epe Expressway, Ijeododo Road in Alimosho and Oba Sekumade Road in Ikorodu. These will contribute to a better quality of living for our people, while also creating a more enabling environment for commercial and economic activity.”

Sanwo-Olu said there had been multiplier effects in socio-economic activities felt from the previous intervention capital raised justified the cost of investment in critical sectors. He said Lagos had maintained high discipline on the size and pricing of its bonds, noting that the State got the clearance to proceed with the issuance as its coupon of 13 per cent yearly fell within the acceptable clearing bid.

The Governor disclosed that the issuance process started in April based on the advice of the State’s transaction advisers. With the issuance of the third bond, Sanwo-Olu said the imperative to aggressively drive his administration’s THEMES agenda had been boosted, pledging to deliver more iconic projects would be raise the value of the State’s economy.

The Governor applauded the Federal Ministry of Finance, SEC, National Pension Commission (PENCOM) and Debt Management Office for supporting the State’s infrastructure drive.

Commissioner for Finance, Dr. Rabiu Olowo, gave summary of the bid book in respect to the bond, pointing out that 319 bids were submitted during the offer period, while total bids at N146.328 billion value were received.

Olowo said N137.328 billion qualified under the terms of the offer at the clearing price of 13 per cent per annum.

He said: “In April 2021, we accelerated an ongoing conversation on the need to quickly intervene on the huge infrastructure gap in the face of limited financial resources. We took advantage of the favourable investment climate in the capital market to initiate a bridge to finance transaction by redeeming and refinancing the existing bonds

“It is fulfilling to note that despite the hurdles that were faced, we have been able to achieve the target we set for ourselves. In fact, we exceeded the target. Many thanks to Mr. Governor for his timely intervention at different phases. This is undoubtedly another momentous transaction for Lagos.”

The State Attorney-General and Commissioner for Justice, Mr. Moyosore Onigbanjo, SAN, represented by the Permanent Secretary, Mrs. Titilayo Shitta-Bey, said members of the State Executive Council, in the December 20, 2021 meeting, approved the resolution of the Government to issue the bond.

Representative of the 24 issuing parties and Managing Director of Chapel Hill Denham, Mrs. Kemi Awodein, described the bond as a “landmark transaction” and largest to be issued by a non-federal government entity.

She said all the issuing parties stood boldly behind the Lagos Government to realise its development objectives for which the bond was facilitated.

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President Mohammadu Buhari declares Old 200 naira note as the only legal tender till April 10th



The President, Major General Muhammadu Buhari (retd.) has approved the continuous use of the old N200 as legal tender till April 10.

The President made this known on Thursday morning during an address to Nigerians. He also apologised to Nigerians over the difficulties experienced in accessing the scarce new naira notes.

Speaking to Nigerians, Buhari said, “I am deeply pained and sincerely sympathise with you all over these unintended outcomes. To stem this tide, I have directed the CBN to deploy all legitimate resources and legal needs to ensure that our citizens are adequately educated on the policy , enjoy easy access to cash withdrawal through availability of appropriate amount of currency and availability of currency.”

He further added, “To further ease the supply particularly to our citizens, I have given approval to the CBN that the old N200 bank notes be released back into circulation and that it should also be allowed to circulate as legal tender with the new N200, N500, and N1000 bank note for 60 days from Feb 10 till April 10 2023, when the old N200 note ceases to become legal tender.”

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ICPC arrests Bank manager over wrapped new Naira notes in ATM vault in Osogbo



The Independent Corrupt Practices and Other Related Offences Commission has arrested the manager of a bank in Osogbo, Osun State, for loading the bank’s automated teller machines with wrapped new Naira notes, thus preventing the machine from being able to dispense the notes.

The ICPC made this known on Twitter page on FridayAccording to the agency, the team directed that the wrapped new Naira notes be properly loaded so that they could be dispensed properly.

The wrapped new Naira notes in ATM vault

“ICPC Compliance Team in Oshogbo has busted an FCMB in Osogbo, Osun State where some ATMs were loaded with cash with their wrappers unremoved, thus preventing the cash from being dispensed. The Team therefore directed that the wrappers be removed, and the cash loaded properly.

“However, when a follow-up visit was undertaken the following day to ascertain the level of compliance, the team discovered that one of the ATMs was still loaded with the wrappers unremoved. The Operation Manager of the Bank was arrested and taken in for questioning.

READ ALSO: Minister of Finance, Zainab Ahmed Says President Buhari is unhappy with the current hardship caused by the naira redesign

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Minister of Finance, Zainab Ahmed Says President Buhari is unhappy with the current hardship caused by the naira redesign



The Minister of Finance, Zainab Ahmed, Has disclosed that President Buhari is unhappy with the hardship Nigerians are facing due to the newly redesigned Naira notes.
She made this known while speaking at the 65th ministerial briefing organized by the Presidential Communications Team in the State House, Abuja, In response to the question on whether the government was not worried about how it’s beautiful idea of redesigning the naira was causing untold hardship in the lives of Nigerians, especially in an election year?

Here was her answer”Of course, we are worried. We are not happy that citizens have to queue and struggle at ATMs to be able to get their cash. But this is a temporary situation. Let me just give you an analogy. If you have a wound, for you to be able to heal that wound, you need to be dressed. And sometimes, when you go to the hospital, they put iodine on the wound and it is very painful. It is necessary to do that to be able to get the wound to heal.

So, it’s not easy. Mr. President is not happy that citizens are suffering. But we are convinced that it is something that needs to be done at this time and also the Central Bank has been responsive in terms of providing some extension and also further explanation that come the closing date, that it is not all over.

There is still opportunity for citizens as provided for in the CBN Act, Section 20 subsection 3 to actually take the old currency to the central bank for redemption. So, it’s not all over. But the positive side of it is that there is a lot of currency that has been mopped up by this operation.

And it means it has achieved a good level of success, but the only sore point is the pain that it has caused to citizens which is regrettable, but which is also very transient and temporary and the bulk is continuing to address” she said

We hope the Government does something to salvage this present situation.

READ ALSO: New Update on CBN policy for new Naira notes dispensation and old Naira notes submition to Banks

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