Lagos, Nigeria – LAPO Microfinance Bank has officially launched a N10 billion 5-year fixed-rate senior unsecured bond, under its N30 billion Debt Issuance Programme, signalling a strategic push to leverage Nigeria’s domestic capital markets for growth and expansion.
Brandspur Banking News Desk reports that the bond offer opened on March 23, 2026, and is scheduled to close on April 1, 2026. The bond will pay a semi-annual coupon, with principal repayment due at maturity. The bond’s interest rate is expected to range between 19.00% and 20.00% per annum, determined through a book-building process.
The issuance, conducted through LAPO Funding SPV Plc, is part of the bank’s broader strategy to fund financial inclusion initiatives, particularly expanding access to financial services for micro, small, and medium enterprises (MSMEs) and underserved communities across Nigeria. Investors can subscribe with a minimum of N20 million, equivalent to 20,000 units priced at N1,000 each, with multiples of N1,000 thereafter.
Analysts note that the bond provides attractive yields compared to similar FGN bonds, which currently offer around 16% for comparable tenors. The higher return compensates investors for the bank’s credit risk while accounting for inflation over the bond’s five-year term.
Over the past five years, LAPO MFB has demonstrated strong financial performance. Profit after tax grew at a compounded annual rate of 25.48%, reaching N9.146 billion in 2025, a 32% increase from 2024. The bank’s net interest income also rose to N59.456 billion, supported by its expanding loan portfolio, which increased from N75 billion in 2021 to N118 billion in 2025. Total assets reached N143 billion, while equity stood at N42 billion, reflecting robust capital management with a capital adequacy ratio of 29%, well above regulatory requirements.
The bond carries a BBB- rating from both Agusto & Co. and Global Credit Rating Company (GCR), underscoring LAPO’s established presence in Nigeria’s microfinance sector. Previous bond issuances—N3.15 billion in 2017 and N6.2 billion in 2020—were fully repaid, providing additional confidence for investors in the bank’s ability to meet obligations.
Investors should weigh the opportunity against inherent risks. While the bond offers high returns, it is subject to credit risk, and investors may face losses if LAPO defaults on interest or principal payments. Additionally, the fixed term may limit flexibility in a fluctuating interest rate environment.
The N10 billion bond issuance represents a strategic step for LAPO Microfinance Bank to consolidate its position in the Nigerian financial market, attract capital for expansion, and strengthen support for underserved populations, reinforcing its commitment to inclusive economic growth.
