LAPO Microfinance Bank Unveils N10bn Bond to Fund Expansion

LAPO Microfinance Bank has announced the launch of a N10 billion five-year fixed-rate senior unsecured bond under its N30 billion Debt Issuance Programme, marking a strategic move to deepen its access to the domestic capital market.

The offer, which opened on March 23, 2026, is scheduled to close on April 1, 2026. The bond will pay a fixed coupon semi-annually, while the principal will be repaid at maturity.

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Issued through LAPO Funding SPV Plc, the bond carries a rating of BBB- from both Agusto & Co. and GCR, reflecting moderate credit risk and the bank’s established presence in Nigeria’s microfinance sector. The interest rate is expected to be priced within a range of 19.00 per cent to 20.00 per annum, subject to investor demand during the book-building process.

The minimum subscription is set at N20 million, equivalent to 20,000 units at N1,000 per unit, with additional investments in multiples of N1,000.

Proceeds from the issuance will be deployed to support financial inclusion initiatives, particularly expanding access to credit and financial services for small businesses and underserved communities across Nigeria.

Founded in 1987, LAPO Microfinance Bank operates across 34 states and the Federal Capital Territory, providing tailored financial solutions to micro, small and medium-sized enterprises as well as low-income households.

Based on an estimated average coupon rate of 19.5 per cent, a minimum investment of N20 million would generate an annual return of approximately N3.9 million, paid in two instalments.

The offering presents a relatively high-yield investment opportunity compared to Federal Government securities of similar tenor, though it carries higher credit risk. The bank’s consistent financial performance, including strong growth in profit, net interest income, and loan portfolio over recent years, supports investor confidence.

However, potential investors are expected to weigh the risks, including the possibility of default and limited flexibility, as funds remain tied to the investment for the duration of the bond.