March 12, 2019/NSE
The attention of The Nigerian Stock Exchange (The Exchange) has been drawn to certain media publications with respect to the Lagos State Government’s N4.85 Billion, 15.75% Series 1, Tranche B, Environmental Note (Municipality Note) and the alleged default in repayment of the coupon and principal on the Municipal Note due on Tuesday, 5 March 2019. The Exchange is of the view these publications if not addressed has the likelihood of dampening investors’ confidence in the Nigerian capital market.
Information garnered by The Exchange in the wake of the media publications reflects that the Municipality Note was issued under a N50 Billion Medium Term Note Programme by Municipality Waste Management Contractors Limited, a privately owned company promoted by Visionscape Sanitations Solutions Limited.
We wish to inform the investing public and our stakeholders that the Municipality Note was not listed on The Nigerian Stock Exchange. As part of its regulatory oversight to safeguard investors in the Nigerian capital market, The Exchange takes steps to satisfy itself that the financial and other advisers have done due diligence on all financial instruments listed on The Exchange in order to ensure that the obligations attached to those instruments are met as and when due.
As part of the requirements for the issuance and the listing of similar debt instruments, The Exchange requires that a Guarantee on the revenue of the State Government is issued, in addition to an approval of the State House of Assembly to back the Notes. The established requirements are necessary to ensure that the risk of default on such instruments when listed on The Exchange are reduced to the barest minimum.
Please be assured of The Exchange’s commitment to maintaining a fair, efficient and transparent market that guarantees the protection of investors’ rights.