FBNQuest Merchant Bank, the investment banking and asset management subsidiary of FBN Holdings Plc, has announced ITS appointment by the Lagos State Government (LASG) as Joint Financial Advisers to refinance LASGs existing debts and raise additional debt for a combined amount of up to N150 billion (approximately $410 million).
The transaction marks the first time the Lagos State Government would be refinancing and raising debt from commercial banks on a Club Deal basis with common terms across all participating banks. The transaction was one part in a series which has resulted in the Lagos State Government raising up to N250 billion from Nigerian commercial banks and the capital markets.
According to FBNQuest, the transaction is aimed at raising funds for Lagos State to carry out and complete a number of infrastructure projects within the state, extend the tenor for some existing facilities, and standardise the cost of financing at more competitive rates across all the existing loan facilities.
Speaking on the transaction, Mr. Patrick Mgbenwelu, Head of Investment Banking at FBNQuest Merchant Bank Limited said, FBNQuest is pleased to have partnered with the Lagos 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”, He said. 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.