NBET, Lagos lead biggest bond borrowers in H1

NBET Finance Company Plc and the Lagos State Government emerged as the leading bond borrowers in Nigeria during the first half of 2026, collectively raising substantial sums. NBET Finance Company Plc secured the top position by raising N501.02 billion through two bond tranches priced at 17.50 percent, intended to alleviate liquidity challenges in the electricity market via the Nigerian Bulk Electricity Trading Plc. The Lagos State Government followed, raising a combined N244.82 billion, including a N230 billion 10-year bond at 16.25 percent and a N14.82 billion five-year Green Bond at 16.00 percent for climate-resilient infrastructure and sustainable transport.

These issuances occurred despite the high cost of capital, with corporate and government-backed issuers paying coupon rates as high as 20 percent. This reflects the impact of Nigeria's tight monetary policy and persistent inflation, compelling investors to demand higher returns. The funds raised across various sectors, including banking, power, manufacturing, real estate, and infrastructure, were primarily used to refinance existing obligations, finance expansion projects, fund infrastructure development, and strengthen working capital.

Among banks, Access Bank Plc led by issuing a N193.83 billion senior unsecured bond at 15.50 percent. Other significant borrowers included UAC of Nigeria Plc, which issued a N54.03 billion seven-year bond at 17.35 percent to refinance debt and fund capital expenditure, and Sunbeth Global Concepts Limited, which raised N150.41 billion through commercial paper series with implied investor yields between 21 percent and 23.50 percent. Nigeria Real Estate Investment Trust also launched a N30.4 billion Series 6 offer.