The revealed that it had successfully issued a N10.5 billion bond backed by InfraCredit to fund its corporate infrastructure projects.
According to a statement from LFCZ on Thursday, the N10.5 billion senior guaranteed fixed rate corporate infrastructure bond was part of its N50 billion debt issuance program and had a 20-year term.
LFCZ, an infrastructure development subsidiary of the Tolaram group, operates the Lagos Free Zone, an integrated port economic zone intended to stimulate the country’s industrial development.
LFCZ said the bond has been assigned a long-term “AAA” credit rating by Agusto and Co. and Global Credit Rating, which is the highest credit rating for bonds.
The bond was reportedly oversubscribed by institutional investors, including eleven national pension funds, two insurance companies, banks and high net worth individuals.
Speaking on the transaction, LFZC CFO, Mr. Ashish Khemka, said the transaction was a significant milestone for the company and reflected the capacity of the Nigerian debt capital market as a true source of domestic funding. for infrastructure development in Nigeria.
He said, “The response to this bond program further strengthens our commitment to realizing our vision and thereby improving Nigeria’s competitive positioning through our continued focus on the parameters of ease of doing business.
InfraCredit CEO Chinua Azubike Said LFCZ Bond Sets New Benchmark in Nigerian Debt Capital Market, As Nigeria’s First 20-Year Corporate Infrastructure Bond, Curving Longer bond yields and strengthening the prospect for Nigerian companies to raise long-term financing in the local market.
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