The Lagos Free Zone’s (LFZ) N25 billion 20-year, 13.25 percent iInfrastructure bond has been listed on The Nigerian Exchange Limited’s (NGX) platform.
The Tolaram Group’s infrastructure development company, LFZ, established Nigeria’s first private free trade zone. The Lagos Free Zone was created to provide businesses access to the West African market’s full potential by giving them access to top-notch facilities and services that make doing business simple.
Recall that the business listed its first issue of N25 billion, 20-Year 13.25 per cent Series 2 Senior Guaranteed Fixed Rate Infrastructure Bonds Due 2042 on August 8, 2022, through LFZ Funding, SPV Plc.
Jude Chiemeka, Divisional Head, Funding Markets, NGX, praised the company for the landmark transactions while speaking at the listing yesterday. This is evidence of the Nigerian debt market’s potential as a reliable source of domestic capital for infrastructural investments in Nigeria.
According to Chiemeka, LFZC has set a new benchmark in the domestic debt capital market of the nation with the second issuing of the N25 billion series 2 bond, the country’s first 20-year corporate infrastructure bond.
“It has elongated the yield curve on corporate bonds and improved the prospects for Nigerian corporates to raise long-term financing in the market. The LFZC Bonds confirm the desire of institutional investors and domestic pension funds to finance viable long-term infrastructure assets.”
In keeping with their overall corporate strategy, Chiemeka urged LFZC and other private issuers to make use of the NGX platform to meet their future financing needs.
“This bond is a part of N50 billion bond program, which we had launched last year,” said Dinesh Rathi, the CEO of LFZC. “This current listing involves the series two of N25 billion long term bond, a 20 year fixed rate instrument and the longest tenure bond in Nigeria’s debt capital market.”
The market capitalization of the NGX’s equity sector continued to decline by N24 billion, fueling further gloomy sentiment.
The All-Share index lost 0.09 percent yesterday, falling from 49644.92 points exchanged the day before to 49599.73 points. The market value of listed securities also dropped, falling from N26.777 trillion reported the day before to N26.753 trillion, a decline of N24 billion.
In comparison to the 138.991 million shares worth N2.725 billion that were traded in 4247 deals the day before, investors traded 128.941 million shares worth N1.668 billion in 3426 deals.
“We do not foresee any big variation from today’s session as we expect the market to continue to trend mixed with low activity,” stated analysts at Vetiva Dealings & Brokerage.
On the price movement chart, PZ Cusson led gainers chart with 9.76 per cent to close at N9 while NPF Microfinance Bank followed, adding 4.58 per
PZ Cusson topped gainers on the price movement chart with a 9.76% increase to conclude at N9, while NPF Microfinance Bank was second with a 4.58% increase to close at N1.60 kobo.
