LAPO Microfinance Bank Limited has returned to the Capital Market for the second time in 2020 for a N6.2 billion debt capital raising through bonds issuance.
The bonds were oversubscribed by N0.2billion, an unprecedented feat in the subsector, despite uncertainties at the market.
A statement by the microfinace bank notes that it was a demonstration of investors’ confidence given its strong corporate governance and fundamentals.
The LAPO MfB SPV PLC N6.2 billion 13 per cent Fixed Rate Series II Senior Unsecured Bonds were successfully listed on the FMDQ OTC last month.
Its Managing Director, Cynthia Ikponmwosa, reiterated that, “LAPO Microfinance Bank Limited remains committed to its goal of economic empowerment of low-income households through access to finance. This additional capital will be deployed to enhance our capacity to meet the needs of micro and small enterprises, especially actors in the rural economy”.
The success of this journey is largely due to the support of African Local Currency Bond (ALCB) Fund (two-time anchor investor) and other parties to the Issue; FBN Quest Merchant Bank and Coronation Merchant Bank who served as Lead and Joint Issuing House/Book Runner respectively.
LAPO Microfinance Bank Limited is already standing by owners of micro and small enterprises who are determined to overcome the set-back of the COVID-19 pandemic. In the months of January to July the microfinance bank delivered N59.4 billion to micro and small enterprises.