Lagos State will ask bondholders next month to agree a change to the payment schedules for N167.5 billion of bonds, the state government said, on Monday.
The state wants to pay interest and principal semi-annually rather than making a single bullet repayment of the principal at maturity.
The meeting is expected to be held on February 23.
The state government said the debt in question included an N80 billion seven-year bond maturing in 2019 and an N87.5 billion to be repaid in 2020. Coupons on the bonds would remain unchanged at 14.5 per cent and 13.5 per cent respectively.
The state government did not say why it wants to change the payment schedule but analysts said Lagos may be hoping to sell new debt at lower yields to fund infrastructure projects.
Nigeria's government approved a $200 million loan from a World Bank agency this month to develop infrastructure in Lagos State.
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