LFZ taps Nigeria's Capital market in 3rd bond issuance

Lagos Free Zone Company has recently made waves in Nigeria's capital market with the issuance of a 17.5 billion naira, 20-year corporate infrastructure bond. This marks the third issuance under a massive 61-billion-naira bond issuance program. The CEO of Lagos Free Zone, Dinesh Rathi, sat down for an exclusive interview with CNBC Africa's David to shed light on the significance of this bond issuance and the impact it will have on infrastructure development in Nigeria. Rathi highlighted the unique position of Lagos Free Zone as a special economic zone located in the Lekki Industrial Corridor of Lagos, boasting the only free zone in Lagos with a port embedded within it - the Lekki Deep Sea Port. This strategic location and infrastructure blend present immense economic benefits for both business operators within the zone and the country as a whole. The bond issuance program has seen overwhelming response and over-subscription from pension bondholders and institutional investors, signaling a strong appetite for long-term infrastructure projects in the capital market. Rathi credited the success of the program to Infra Credit's support in providing guarantees for the bond program. With over 53 billion naira raised through the three tranches, it's evident that there is a market for such products given the right credit support and a credible story. The ecosystem at Lagos Free Zone is well-equipped with various support services like power, gas, warehouses, factories, land, fire station, police station, medical facility, waste management, and more, presenting a plug-and-play environment for business operators. The zone's commitment to sustainability is evident through its focus on the environment, green cover, and the construction of eco-friendly buildings, showcasing a balanced approach towards economic growth and environmental conservation. Job creation is also a key agenda for Lagos Free Zone, with over 2,500 people currently employed, including a significant number from nearby communities. The zone's contribution to the economy through customs duty payment further underscores its impact on the local and national level. Rathi emphasized Lagos Free Zone's potential to shift Nigeria from a consumer-led economy to an export-oriented one, leveraging its infrastructure and special economic zone status to position the country as a manufacturing hub under the Continental Free Trade Agreement. This strategic vision aligns with the goal of driving export-led growth and expanding Nigeria's footprint in the African market. As other governments look to replicate this model for infrastructure development, Lagos Free Zone stands as a blueprint for economic transformation and sustainable growth in the region. With the imminent arrival of the first commercial vessel at Lekki Sea Port, marking a significant milestone for the zone, all eyes are on the future as Lagos Free Zone sets the stage for a new era of infrastructure development and economic prosperity in Nigeria.