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LAPO Microfinance Bank has announced the launch of its N10 billion 5-year fixed-rate senior unsecured bond under the N30 billion Debt Issuance Programme.

This issuance marks a significant milestone for LAPO MFB in its strategic use of the domestic capital markets to fund its expansion and growth plans.

The offer, which opened on March 23, 2026, is scheduled to close on April 1, 2026, and the coupon will be paid semi-annually, with the principal due at maturity.

LAPO Microfinance Bank is one of Nigeria’s microfinance institutions, offering financial services for low-income and underserved populations.

The bank started operations in 1987 and now operates across 34 states and the Federal Capital Territory (FCT).

It provides tailored financial solutions for micro, small, and medium enterprises (MSMEs) and low-income households.

LAPO Funding SPV Plc, acting as the issuer of the N10 billion 5-year fixed-rate senior unsecured bond, is leveraging the bond to support its financial inclusion initiatives.

This issuance falls under its N30 billion Debt Issuance Programme, marking the next step in the bank’s strategic expansion into the Nigerian capital markets.

This bond is expected to pay an interest rate between 19.00% and 20.00% per year, but the exact rate is not fixed yet. It will depend on how investors bid during the book building process.

However, for the sake of estimation, if we assume an average coupon rate of 19.50%, and considering a minimum investment of N20 million (which corresponds to 20,000 units of the bond, priced at N1,000 per unit), the bond will pay an annual interest of N3.9 million.

This annual interest will be split into two equal payments (since the coupon is paid semi-annually).

The N10 billion bond issuance by LAPO Funding SPV Plc appears to be a good investment opportunity, especially when considering the bank’s solid financial track record and growth trajectory.

With a coupon rate of 19.00% – 20.00%, the bond provides higher yields compared to FGN similar tenor bond (which currently offers around 16% for a similar tenor).

From a financial perspective, LAPO Microfinance Bank has demonstrated robust performance over the past five years.

Net interest income reached N59.456 billion; 30% higher than 2024 N46 billion. The growth has been consistent, from N30.5 billion in 2021 to 2025 numbers.

Also, LAPO has shown consistent growth in its balance sheet, with total assets reaching N143 billion and an equity base of N42 billion by 2025.

The bond is rated BBB- by both Agusto & Co. and Global Credit Rating Company (GCR), reflecting LAPO’s established position in Nigeria’s microfinance sector and its solid financial foundation.

The bank’s previous bond issuances (N3.15 billion in 2017 and N6.2 billion in 2020, both fully repaid) add further confidence in its ability to meet obligations.

Although LAPO has repaid its previous bond issuances, there is still the potential risk of default

If LAPO MFB defaults on interest payments or principal repayment, investors could face losses.