Governor Akinwunmi Ambode of Lagos State yesterday, announced that the State Government has restructured 167.5 billion naira ($840 million) of bonds, potentially saving at least 40 billion by paying off the debt more quickly, though he did not mention when payment would be made.
Ambode, said the restructuring was approved by the Securities and Exchange Commission (SEC) last week after an agreement was reached with bond creditors.
“The transaction will generate savings in excess of 40 billion naira ($201.01 million) for the state over the next five years,” he tweeted.
According to the Governor, the bonds are an 80-billion-naira seven-year bond maturing in 2019 and an 87.5-billion bond that was due to be repaid in 2020.
Coupons on the bonds would remain unchanged at 14.5 percent and 13.5 percent respectively.
Lagos State Finance Commissioner Akinkunmi Mustapha in a statement, said the restructuring was done through domestic capital markets and “was approved by 99.6 per cent of the state’s bondholders at an extraordinary general meeting a few weeks ago”
The Federal Government approved a $200 million loan from a World Bank agency in January to develop infrastructure in Lagos state.