Best Islamic project finance deal – Africa: Lagos State Government N19.8 billion ljarah lease sukuk

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Best Islamic project finance deal – Africa: Lagos State Government N19.8 billion ljarah lease sukuk


Issuer: Lagos State Infrastructure Sukuk SPV

Size: N29.8 billion  

Structure: Forward ijarah lease sukuk 

Tenor: Seven years

Banks: Lotus Capital (lead bookrunner), Chapel Hill Denham, Capital Assets, CardinalStone, SCM Capital, Stanbic IBTC (joint bookrunners).

Date: May 2023

 


With a population of over 20 million, the size and population density of Lagos – Africa’s largest city and Nigeria’s economic powerhouse – creates complex and substantial infrastructure needs in almost every area from telecoms and renewable energy to water and sanitation.

While the Nigerian government can help finance some of the enormous investment needed, much of the funding needs to come from the private sector, making the domestic capital markets a key priority for the state of Lagos.

Executing on this, the Lagos state government chose to access the domestic bond and sukuk market last year, issuing a N115 billion ($90 million) 10-year bond and a N29.8 billion seven-year sukuk – Lagos’s first – to finance over 200 infrastructure projects across the state, many of which will be in the water, sanitation and hygiene sectors. 



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