February 19, 2020

Lagos State Government ₦100 Billion 12.25% Series 3 Fixed Rate Bond Due 2030 Under The ₦500 Billion Debt Issuance Programme

FBNQuest Merchant Bank Limited is a leading Investment Bank registered with the Nigerian Securities & Exchange Commission (“SEC”) as an Issuing House, and
also regulated by the Central Bank of Nigeria.

As Joint Lead Issuing house/book runner, we alongside a consortium of Issuing houses jointly arranged, structured, and issued the Lagos State Government Series 3 Bond out
of the ₦500 billion Bond Issuance programme launched on 30 December 2016.

We advised on the transaction structure and marketing strategy for the bonds including market timing and crafting appropriate credit story for the client.

The Bonds were successfully distributed to a diversified mix of investors which included Pension Fund Administrators (PFAs), Banks, Asset Managers, HNIs and Others. The consolidated Order book was ₦196.5 billion out of which bids totalling ₦100 billion was accepted meaning the transaction was 196.5% subscribed.

The Bond is the largest ever issuance with a 10-year tenor by a sub-national in Nigeria. The success of the transaction attests to the degree of confidence investors have in Lagos State as the major tech and economic hub in Africa.