NGX admits LFZ N25 billion infrastructure bond on platform

Stockbrokers work at the Nigerian Stock Exchange in Lagos on May 16, 2019. - Africa's largest mobile phone operator, MTN, listed shares on the Nigerian Stock Exchange (NSE) in a $6 billion flotation reflecting its increasing presence in the Nigerian market, its largest. (Photo by PIUS UTOMI EKPEI / AFP) (Photo credit should read PIUS UTOMI EKPEI/AFP via Getty Images)
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As capitalisation dips further by N24b amid selloffs

The Nigerian Exchange Limited (NGX) has admitted the listing of Lagos Free Zone, (LFZ)’ N25 billion 20-year, 13.25 per cent iInfrastructure bond on its platform

LFZ is the infrastructure development company of the Tolaram Group and the first private free trade Zone in Nigeria. The Lagos Free Zone was established to provide organisations access to the full potential of the West African market by offering access to top-tier facilities and services that enable ease of doing business.

Recall that the company had on August 8, 2022, through LFZ Funding, SPV Plc’s listed its first issuance of N25 billion, 20-Year 13.25 per cent Series 2 Senior Guaranteed Fixed Rate Infrastructure Bonds Due 2042 under the N50 billion bond issuance programme.

Speaking at the listing yesterday, Divisional Head, Capital Markets, NGX, Jude Chiemeka applauded the company on the milestone transactions, which is a testament to the capacity of the Nigerian debt market as a veritable source of domestic capital for infrastructural developments in Nigeria.

According to Chiemeka, with the second issuance of the N25 billion series 2 bond, the first 20-year corporate infrastructure bond in Nigeria, LFZC has established a new standard in the domestic debt capital market of the country.

“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.”

Chiemeka encouraged LFZC and other private issuers alike to utilise the NGX platform in meeting future financing needs to support their business expansion in line with their overall corporate strategy.

The CEO of LFZC, Dinesh Rathi, stated that “this bond is a part of N50 billion bond programme, which we had initiated last year and this current listing entails 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.”

Meanwhile, bearish sentiment persisted on the equities sector of the NGX as market capitalisation depreciated further by N24 billion.

Yesterday, the All -Share index also depreciated by 0.09 per cent to 49599.73 points from 49644.92 points traded the previous day. Market capitalisation of listed equities also decreased by N24 billion to N26.753 trillion from N26.777 trillion reported the previous day.

Investors traded 128.941 million shares valued at N1.668 billion in 3426 deals against 138.991 million shares valued at N2.725 billion exchanged hands the previous day in 4247 deals.

Analysts at Vetiva Dealings and Brokerage said: “We do not foresee any major deviation from today’s session as we expect the market to continue to trend mixed with minimal activity.”

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 cent to close at N1.60 kobo.