LAPO MfB targets N6.2bn via bond issuance

LAPO Microfinance Bank Limited has returned to the capital market for the second time in 2020 for a N6.2bn debt capital through bonds issuance.

The previous bonds were oversubscribed by N0.2bn, an unprecedented feat in the subsector, despite uncertainties at the market.

According to the bank, the over-subscription is a demonstration of investors’ confidence given its strong corporate governance and fundamentals.

The LAPO MfB SPV PLC N6.2bn 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, “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.”

Ikponmwosa said the success of the journey was largely due to the support of African Local Currency Bond 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.

From January to July this year, the MfB delivered N59.4bn to micro and small enterprises.

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