The governor of Lagos, Babajide Sanwo-Olu, has signed a N137.3 billion 10-year bond to raise cash for critical infrastructure projects.
On Monday, the governor presided over a ceremony in which the state’s attorney general, issuing parties, and trustees of the funds signed relevant documents required by the Securities and Exchange Commission (SEC) to permit the issue of a 13% fixed-rate bond.
The ceremony also marked the third time the Lagos Government would issue a 10-year bond (2021-2031), raising the total amount of the Lagos State’s Series IV N500 Billion Debt Issuance Program’s bonds to N377.715 billion.
The government wanted to raise N125 billion from the capital market, but the bids were oversubscribed, resulting in a total of N137.3 billion being raised.
“Lagos once again marks another milestone in the domestic debt capital markets, with the issuance of the largest bond ever by a sub-national Government in Nigeria,” the governor said.
“The signing ceremony finalises the issuance of N137.3 billion bond at 13 percent fixed rate in our Series IV Bond Issuance under the N500 Billion Fourth Debt Issuance Programme.
“We set out to raise up to N125 billion, but we closed the book with bids totalling N137.3 billion. This is a strong response from the investing community to our administration’s debut bond issuance.
“This humbling achievement is a testament to continued investors’ confidence in the State’s ability to deliver on its infrastructural and socio-economic developmental objectives, and also to meet repayment obligations.”
This, according to the governor, exhibited a “strong response” from the investing community and demonstrated investors’ trust in the state’s capacity to accomplish its infrastructure and socioeconomic development goals while also satisfying repayment obligations.
The bond, according to the governor, will be used to fund infrastructure initiatives in the areas of healthcare, the environment, and road building.
According to Sanwo-Olu, the improvements will improve people’ quality of life and create a conducive atmosphere for commercial and economic operations.
“Proceeds from this bond would be utilized to finance infrastructure projects, primarily in the areas of roads, environment, and healthcare, in keeping with our ambition to develop a Greater Lagos,” he added.
“These projects include 10-km regional road in Eti Osa, six-lane Lekki-Epe expressway, Ijeododo Road in Alimosho, and Oba Sekumade Road in Ikorodu.
“These will contribute to a better quality of living for our people, while also creating a more enabling environment for commercial and economic activity.”
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