Lagos state Government (LASG), said on Monday, that it will ask bondholders next month to agree a change to the payment schedules for N167.5 billion($842 million) of bonds.
The meeting between the Government and the bondholders will be held on February 23, the LASG wants to pay interest and principal semi-annually rather than making a single bullet repayment of the principal at maturity.
According to the LASG, the debt in question includes an N80 billion naira seven-year bond, maturing in 2019 and am N87.5 billion bond to be repaid in 2020. Coupons on the bonds would remain unchanged at 14.5 percent and 13.5 percent respectively.
Although the state government did not reveal why it wants to change the payment schedule, but according to Reuters, analysts said Lagos may be hoping to sell new debt at lower yields to fund infrastructure projects.
Reuters originally reported this news