CLOSING TOMORROW: LAGOS STATE GOVERNMENT SERIES II FORWARD-IJARAH SUKUK ISSUANCE OF UP TO NGN20 BILLION
Dear Valued Investor,
MBC SECURITIES LIMITED is pleased to inform you that the Lagos State Government’s (“Lagos State’s”, ‘’LASG’s’’ or “the State’s”) Series II up to ₦20 Billion Forward-Ijarah Sukuk Issuance (‘Series II Issuance” or “Series II Sukuk”), under LASG’s ₦1 Trillion Debt and Hybrid Instruments Issuance Programme (“DAHI Programme”) is NOW OPEN. The Offer is scheduled to close on Thursday, May 18, 2023.
Lagos State is Nigeria’s economic focal point with a GDP of ₦26.6 trillion (CAGR of ~11% from 2017 to 2021), representing c. 15% of Nigeria’s GDP. Lagos State is among the 10 fastest-growing markets in Africa (and was ranked the 4th largest city in Africa in 2021) accounting for the location of more than 65% of Nigeria’s industrial capacity. The headquarters for most Nigerian Banks are in Lagos as well as top-tier companies and trans-national corporations. The State is strategically positioned as a major trade port – with 50% of Nigeria’s port revenue beings generated in Lagos from 3 lighter terminals and 2 seaports – and first choice destination for foreign investors.
The issuance of the Sukuk – the second by a Nigerian sub-national that is registered with the SEC – will attract another orbit of investors to the ongoing infrastructure development in Lagos State. The Sukuk is rated ‘Aa’ and ‘Aa-‘ by Agusto & Co. and GCR respectively, which is underpinned by the State’s resilient financial condition, robust financial flexibility, suitable expenditure profile and very strong cash-generating capacity to meet local currency obligations in a timely manner from Internally Generated Revenues (IGR). Lagos State’s IGR is over 70% of the State’s total revenues. In 2021, the State generated total revenue of ₦771bn, including IGR of ₦573bn. The Sukuk is further enhanced by an Irrevocable Standing Payment Order (ISPO) on Lagos States’s share of statutory allocation.
Lagos State is a leader in the progression and implementation of the National Sustainable Development Goals (“SDGs”). Over the last 10 years, Lagos State’s spending on infrastructure development within the State has exceeded circa N3 trillion. The focus on infrastructure development is essential, fostering economic growth and boosting the State’s financial capacity, enabling it to attract further capital.
The issue proceeds from the Sukuk Issuance will be applied to financing the construction/rehabilitation of the Awoyaya section of Eti-Osa/Lekki/Epe Expressway
The indicative terms of the proposed Series II issuance are as stated below:
Issuer: | Lagos State Infrastructure Sukuk SPV Plc (“the SPV”) | |
Originator: | Lagos State Government (“the State”) | |
Programme Size | NGN1 Trillion | |
Issue Sizes: | Up to NGN20 Billion | |
Issue Description: | Series II Fixed Return Forward-Ijarah Lease Sukuk | |
Issuing House/Book Runner: | Chapel Hill Denham Advisory Limited | |
Shariah Adviser: | Lotus Financial Services Limited | |
Ratings (Originator): | Aa- (Agusto & Co) | AA- (GCR) |
Ratings (Issue): | Aa (Agusto & Co) | AA- (GCR) |
Tenor: | 7 years | |
Rental Guidance (%): | 14.500% – 14.675% | |
Offer Open: | Tuesday 16, May, 2023 | |
Offer Close: | Thursday 18, May, 2023 | |
Redemption/Payment Basis: | Payment of the Purchase Price/Amortised redemption of Principal Amount from the Issue Date following a 24-month moratorium | |
Funding Structure: | Sinking Fund managed by the Joint Trustees and Irrevocable Standing Payment Order (“ISPO”) and Consolidated Debt Service Account (“CDSA”) (remittances from the State’s Internally Generated Revenue) | |
Offer Mode | Offer for subscription via book-build | |
Rental Basis: | Fixed rate, Semi-annual | |
Unit of Sale: | Minimum of NGN10,000,000, with multiples of NGN1,000 thereafter | |
Listing: | FMDQ Securities Exchange Limited and Nigerian Exchange Limited | |
Use of Proceeds: | To finance the construction/rehabilitation of the Awoyaya section of the Eti-Osa/Lekki /Epe Expressway | |
Taxation: | Applicable taxes shall apply except otherwise exempt |
In the interim, kindly access supporting offer documents via [Lagos State Series II Sukuk Offer Documents] for your review and consideration.
1. Lagos State Series II Sukuk Pricing Supplement
2. Lagos State Series II Sukuk Declaration of Trust
3. Series II Sukuk Issue Rating Report by Agusto & Co (“Agusto”) and Global Credit Rating Co. (GCR)
4. The Originator’s Rating Report by Agusto & GCR
7. Audited Financial Statements (2017-2021)
8. LASG DAHI Programme Prospectus
10. Commitment Form
For further enquiries, kindly reach:
Ismail Lawal – ilawal@mbcgroup.com.ng /08079214500
Obianuju Egwuatu – oegwuatu @mbcgroup.com.ng/ 08137475868
Oge Igboanu – oigboanu@mbcgroup.com.ng /08084725580
Titus Oyafemi – toyafemi@mbcgroup.com.ng/ 08023906411
Thank you.
NOW OPEN: LAGOS STATE GOVERNMENT NGN100 BILLION SERIES I BOND ISSUANCE
For more information, kindly access supporting offer documents via below LASG Series I Bonds for your review and consideration:
3. Series I Pricing Supplement
5a. Audited Financial Statements (2017)
5b. Audited Financial Statements (2018)
5c. Audited Financial Statements (2019)
6. The Series I Ratings Report by Agusto & Co (“Agusto”) and Global Credit Rating Co. (“GCR”)
7. The Issuer’s Rating Report by Agusto and GCR
For further enquiries, kindly reach:
Obianuju Egwuatu- oegwuatu@mbcgroup.com.ng /08138282952
Titus Oyafemi- toyafemi@mbcgroup.com.ng/ 08023906411
Thank you.
Daily Financial Market Report for January 29, 2021
Equities market ends Trading week on a Positive Note…ASI Gains 58 Basis Point
The Nigerian Stock Exchange (NSE) closed positive as bulls dominated proceedings in the market today. The benchmark All Share Index (ASI) appreciated by 0.58% to close at 42,412.66. Similarly, Market Capitalization increased by N127 billion to close at N22.19 trillion while the Year-to-Date (YtD) returns settled at 5.32%.
Sectors performance was Significantly Bullish
Performance across sectors was significantly bullish as 4 out of the 5 sectors closed in the green zone. Banking, Insurance, Consumer goods and Oil and gas indices advanced by 0.52%, 0.91%, 0.32% and 0.63% respectively, on the back of buy interests recorded in the shares OF ARDOVA (8.59%), VITAFOAM (6.91%), HONEYWELL (4.00%), MTNN (3.43%), UACN (2.45%), FCMB (2.42%), DANGSUGAR (1.92%), ETI (1.56%), GUARANTY (1.47%) and UBN (0.83%) among others. While Industrial (-0.08%) indices closed in the red zone due to sell pressures in the shares of TRANSCORP (-7.27%), CAP (-2.44%), WAPCO (-0.99%) and CUTIX (-0.44%) amongst others..
NASD Market
Please find here attached our Daily Financial Market update for today, January 29th, 2021.
Daily Financial Market Report for January 28, 2021
Equities market Sustains Positive Trend ……ASI Gains 57 Basis Point
Sectors performance was Broadly Bullish
Performance across sectors was broadly bullish as 3 out of the 5 sectors closed in the green zone. Banking, Consumer goods and Industrial indices advanced by 2.11%, 0.94% and 0.21% respectively, on the back of buy interests recorded in the shares OF JBERGER (9.95%), UBN (6.14%), TRANSCORP (4.76%), GUINNESS (3.78%), ZENITH (3.03%), WAPCO (2.71%), GUARANTY (2.41%), UACN (1.88%), DANGSUGAR (1.21%) and UBA (0.56%) among others. While Insurance (-0.56%) and Oil and Gas (-1.75%) indices closed in the red zone due to sell pressures in the shares of NIGERINS (-8.70%), MOBIL (-8.62%), VERITAS (-8.33%), NEM (-7.56%), CADBURY (-7.29%), LASACO (-6.67%), LIVESTOCK (-3.86%), ARDOVA (-2.78%), MBENEFIT (-2.13%) and FCMB (-1.20%) amongst others.
NASD Market
Please find here attached our Daily Financial Market update for today, January 28th, 2021.
Daily Financial Market Report for January 18, 2021
Equities market Closes on a Negative Note ……ASI Loses 23 Basis Point
Sectors performance was Broadly Bullish
Performance across sectors was broadly bullish as 3 out of the 5 sectors closed in the green zone. Insurance, Banking and Oil and Gas indices advanced by 5.93%, 0.01% and 0.02% respectively, on the back of buy interests recorded in the shares CADBURY (10.00%), LIVESTOCK (9.95%), TRANSCORP (9.18%), MANSARD (5.62%), GUARANTY (1.82%), UACN (1.21%), VITAFOAM (1.10%), WAPCO (0.84%), ETI (0.77%) and OANDO (0.29%) among others. While Industrial (-0.43%) and Consumer Goods (-0.62%) indices closed in the red zone due to sell pressure in the shares of JAPAUL (-6.58%), FLOURMILL (-5.49%), FBNH (-3.95%), FIDELITY (-1.81%), UBA (-1.62%), DANGSUGAR (-1.44%), ACCESS (-1.03%), DANGCEM (-1.01%), FCMB (-0.93%) and ZENITH (-0.57%) amongst others.
NASD Market
The NASD market closed positive after today’s trading activities as the Unlisted Securities Index (USI) advanced by 0.60% to close at 744.46. Consequently, Market Capitalization also closed positive to close at N534.16. Market activity measured by aggregate volume increased by 208.61% while value decreased by 4.09%. Investors traded a total of 10.01mn units of shares valued at N10.76 mn in 2 deals.
Please find here attached our Daily Financial Market update for today, January 18th, 2020.
Daily Financial Market Report for January 15, 2021
Equity market Closes on a Bullish Note ……ASI Gains 52 Basis Point
The Nigerian Stock Exchange (NSE) closed positive as bulls dominated proceedings in the market today. The benchmark All Share Index (ASI) appreciated by 0.52% to close at 41,176.14. Similarly, Market Capitalization increased by N111 billion to close at N21.53 trillion while the Year-to-Date (YtD) returns settled at 2.25%.
Sectors performance was Significantly Bullish
Performance across sectors was significantly bullish as all 5 sectors closed in the green zone. Insurance, Banking, Industrial, and Consumer Goods indices advanced by 4.12%, 1.74%, 0.08% and 0.11% respectively, on the back of buy interests recorded in the shares UACN (10.00%), JAPAULGOLD (9.35%), FLOURMILL (9.33%), DANGSUGAR (2.21%), UBA (2.21%), ACCESS (2.11%), FBNH (1.33%), WAPCO (1.28%), MTNN (1.19%), and GUARANTY (0.15%) among others. While Oil and Gas index closed in the red zone due to sell pressure in the shares of DAARCOM (-10,00%), ARDOVA (-9.84%), STERLING (-1.96%), HONYFLOUR (-1.61%), JAIZ (-1.43%), CAVERTON (-1.00%), LEARNAFRICA (-1.00%), NAHCO (-0.89%), ZENITH (-0.38%) and UNILEVER (-0.37%) amongst others.
NASD Market
The NASD market closed positive after today’s trading activities as the Unlisted Securities Index (USI) as it advanced by 0.07% to close at 741.47. Consequently, Market Capitalization also closed positive to close at N53202. Market activity measured by aggregate volume decreased by 26.38% while value decreased by 7.19%. Investors traded a total of 35,000 units of shares valued at N4.56 mn in 9 deals.
Please find here attached our Daily Financial Market update for today, January 15th, 2020.
Daily Financial Market Report for January 14, 2021
Equity market Closes on a Bullish Note ……ASI Gains 154 Basis Point
The Nigerian Stock Exchange (NSE) closed positive as bulls dominated proceedings in the market today. The benchmark All Share Index (ASI) appreciated by 1.54% to close at 40,963.14. Similarly, Market Capitalization increased by N325 billion to close at N21.42 trillion while the Year-to-Date (YtD) returns settled at 1.72%.
Sectors performance was Significantly Bullish
Performance across sectors was significantly bullish as all 5 sectors closed in the green zone. Insurance, Oil and Gas, Banking, Industrial, and Consumer Goods indices advanced by 4.12%, 1.74%, 0.08% and 0.11% respectively, on the back of buy interests recorded in the shares MANSARD (9.42%), ARDOVA (9.25%), WAPCO (3.98%), ACCESS (3.83%), DANGSUGAR (3.56%), DANGCEM (3.04%), UBA (2.84%), FLOURMILL (2.39%), FBNH (2.04%), ZENITH (1.93%) and GUARANTY (1.85%) among others.
NASD Market
The NASD market closed positive after today’s trading activities as the Unlisted Securities Index (USI) as it advanced by 0.07% to close at 741.47. Consequently, Market Capitalization also closed positive to close at N53202. Market activity measured by aggregate volume decreased by 26.38% while value decreased by 7.19%. Investors traded a total of 35,000 units of shares valued at N4.56 mn in 9 deals.
Please find here attached our Daily Financial Market update for today, January 14th, 2020.
Daily Financial Market Report for January 13, 2021
Equity market Closes on a Bullish Note ……ASI Gains 11 Basis Point
The Nigerian Stock Exchange (NSE) closed positive as bulls dominated proceedings in the market today. The benchmark All Share Index (ASI) appreciated by 0.11% to close at 40,341.05. Similarly, Market Capitalization increased by N23 billion to close at N21.09 trillion while the Year-to-Date (YtD) returns settled at 0.17%.
Sectors performance was Significantly Bullish
Performance across sectors was significantly bullish as all 5 sectors closed in the green zone. Insurance, Oil and Gas, Banking, Industrial, and Consumer Goods indices advanced by 4.12%, 1.74%, 0.08% and 0.11% respectively, on the back of buy interests recorded in the shares MANSARD (9.52%), JAPAUL (9.48%), MOBIL (9.43%), FLOURMILL(6.93%), GUINNESS (1.61%), ARDOVA (1.52%), WAPCO (1.35%), ACCESS (1.10%), ZENITH (0.39%) and SEPLAT (0.08%) among others.
NASD Market
The NASD market closed flat after today’s trading activities as the Unlisted Securities Index (USI) remained unchanged to close at 740.98. Consequently, Market Capitalization also remained unchanged to close at N531.67. Market activity measured by aggregate volume decreased by 97.09% while value increased by 150.11%. Investors traded a total of 47,544units of shares valued at N4.9 mn in 2 deals.
Please find here attached our Daily Financial Market update for today, January 13th, 2020.
Market Update
- GSPECPLC N6.35 0.00%
- GUARANTY N40.70 1.62%
- GUINEAINS N0.38 0.00%
- GUINNESS N97.50 0.00%
- HMARKINS N0.30 0.00%
- -8.33%
- IKEJAHOTEL N3.13 0.00%
- INFINITY [BLS] N1.42 0.00%
- INITSPLC N0.76 0.00%
- INTBREW N44.00 0.00%
- INTENEGINS [DIP] N0.42 0.00%
- INTERLINK [BLS] N3.61 0.00%
- JAIZBANK N0.67 4.69%
- JAPAULOIL N0.47 0.00%
- JBERGER N27.50 0.00%
- JOHNHOLT N0.57 0.00%
- JULI [MRF] N1.67 0.00%
- LASACO N0.34 -2.86%
- LAWUNION N0.86 0.00%
- LEARNAFRCA N1.51 -4.43%
- LINKASSURE N0.87 0.00%
- LIVESTOCK N0.79 -4.82%
- MANSARD N2.78 0.00%
- MAYBAKER N2.45 0.00%
- MBENEFIT N0.35 0.00%
- MCNICHOLS N0.98 0.00%
- MEDVIEWAIR N2.14 0.00%
- MEYER N0.68 0.00%
- MOBIL N183.00 0.00%
- MORISON N0.55 0.00%
- MRS N34.25 0.00%
- MULTITREX [BLS] N0.40 0.00%
- MULTIVERSE N0.20 0.00%
- NAHCO N3.99 0.00%
- NASCON N22.75 0.00%
- NB N110.50 -1.34%
- NCR N6.30 0.00%
- NEIMETH N0.57 -5.00%
- NEM N3.04 4.83%
- NESF N552.20 0.00%
- NESTLE N1495.00 0.00%
- NIG-GERMAN [MRS] N3.62 0.00%
- NIGERINS [MRF] N0.25 0.00%
- NNFM N6.55 0.00%
- NPFMCRFBK N1.80 0.00%
- NSLTECH N0.48 0.00%
- OANDO N6.55 -1.50%
- OKOMUOIL N94.20 4.43%
- OMATEK [MRF] N0.50 0.00%
- OMOMORBNK N0.71 0.00%
- PAINTCOM [DIP] N0.59 0.00%
- PHARMDEKO N2.20 0.00%
- PORTPAINT N2.05 0.00%
- GOLDINSURE [MRS] N0.53 0.00%