LAPO MFB SPV Plc, a special purpose vehicle wholly owned by LAPO Microfinance Bank Limited, has raised ₦4,458,643,000 from its Series 1 Senior Unsecured Fixed Rate Bond, according to allotment data cleared by the Securities and Exchange Commission (SEC).
The issuance, which forms part of the SPV’s ₦30 billion bond programme, recorded 100 percent subscription with 31 applications and no rejections, reflecting strong demand for the five-year instrument due in 2031.
The bond carries a fixed coupon of 20.00 percent per annum and was offered to qualified institutional investors and high-net-worth individuals under a book-built structure.
Despite full subscription across all applications, the allotment pattern revealed a high concentration of participation, with six investors accounting for approximately 81 percent of the total raised.
According to the SEC-approved data, the majority of allocations were concentrated among a small number of large-ticket investors, highlighting the institutional nature of the offer.
Two investors in the 500,001–1,000,000 units category collectively subscribed to about ₦2 billion, representing 44.86 percent of the total issuance. Each is estimated to have committed roughly ₦1 billion.
An additional four investors in the 100,001–500,000 units bracket accounted for ₦1.6 billion, or 35.89 percent of total subscriptions.
Combined, these six investors contributed about ₦3.6 billion, representing roughly 80.75 percent of the total offer, while the remaining 25 investors shared the balance of ₦855.6 million.
At the lower end of the spectrum, three investors in the smallest subscription band collectively invested about ₦3 million, underscoring the skewed distribution of allocations despite full subscription across the book.
The structure indicates that while the offer was technically open to a wide range of qualified investors, the bulk of capital was anchored by a few institutional or ultra-high-net-worth participants.
Market analysts note that the 20 percent coupon remains competitive within Nigeria’s fixed-income space, especially when compared with prevailing monetary policy and treasury bill yields.
At the Central Bank of Nigeria’s Monetary Policy Rate of 27.50 percent and secondary market yields ranging between 18 and 22 percent, the bond is positioned as relatively attractive medium-term paper for investors seeking stable returns.
For LAPO MFB SPV, the issuance represents the first tranche under its ₦30 billion programme, leaving approximately 85 percent of capacity available for future fundraising rounds.
The SPV structure enables the microfinance institution to access capital markets funding independently of its core banking operations, providing flexibility for expansion and liquidity management.
LAPO Microfinance Bank Limited, one of Nigeria’s largest microfinance institutions, focuses on group-based lending to low-income households and micro-entrepreneurs, particularly women.
The transaction was supported by FirstCap as lead issuing house and bookrunner, alongside Anchoria Advisory Services, AVA Capital PLC, Quantum Zenith, and RMB as joint bookrunners.
Following regulatory clearance, successful subscribers will receive their bond allocations through CardinalStone Registrars Limited.
