The N6.2 billion series 2 fixed rate senior unsecured bonds issued by LAPO Microfinance Bank Limited in 2020 have been redeemed by the company.
The small lender repaid bondholders on the maturity of the corporate debt instrument, Business Post gathered.
The thick of the COVID-19 lockdown and economic meltdown, LAPO Microfinance Bank approached the capital market to source funds from investors at 13 per cent.
Due to the confidence investors have in the organisation as one of the top microfinance banks in Nigeria, the bond issuance was oversubscribed by N200 million.
The bank attributed this investor confidence to its “strong corporate governance and fundamentals.”
The financial institution did not disappoint as it fully paid the bond subscribers at maturity, further solidifying the trust investors have in the company.
When it sold the papers five years ago, the Managing Director said the N6.2 billion was to be used 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.
“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. From January to July the microfinance bank delivered N59.4 billion to micro and small enterprises.”
After issuing the notes in 2020, LAPO Microfinance Bank took them for listing on the FMDQ Securities Exchange.
LAPO Microfinance is a leading microfinance bank in Nigeria, accounting for over 20 per cent of the market share.
The firm had wanted to raise N6 billion from the bond issuance under its N20 billion bond programme, but was oversubscribed by N200 million. A unit of the note was sold at N1,000 via book building, opening from Tuesday, February 10 and closing on Wednesday, February 19, 2020.