The funds are to be applied to the various infrastructure projects in the state.
The deal was significant, as it marked the first time the Lagos State Government would be refinancing and raising debts from commercial banks on Club Deal with common terms across all participating banks.
The transaction was one part in a series, which has resulted in the Lagos State Government (LASG) raising up to N250 billion from commercial banks and the capital markets. The transaction aimed to achieve three main objectives: raise funds for Lagos State to carry out and complete some infrastructure projects within the state, extend the tenor for some facilities, and standardise the cost of financing at more competitive rates across all the loan facilities.
Funds raised from the transaction are to be directly applied to some of the significant infrastructure projects currently being carried out in the state in support of LASG’s infrastructure agenda. Upon completion, the projects will be transformational in nature, as they are expected to result in an improved quality of life in the city. These cut across the transportation, housing, education, health and environmental sectors.
Head of Investment Banking at FBNQuest Merchant Bank Limited, Patrick Mgbenwelu said: ‘‘We are pleased to have partnered the Lagos State Government on this important transaction, which will contribute significantly to the infrastructure development goals of Lagos State. The transaction closed in record time, given the unique approach adopted. We look forward to working on other key projects that will support the strategic objectives of the state.”
FBNQuest Merchant Bank received the EMEA Finance African Banking Award for the Best Local Investment Bank in Nigeria, and was recognised at the FMDQ Gold Awards as the Most Innovative Registration Member last year.