Lagos State has issued a N137.3 billion 10-year bond to fund important infrastructure projects in the state.
The N500 billion Fourth Debt Issuance Programme’s 13 percent fixed-rate Series IV Bond Issuance is the largest single bond in the Nigerian domestic market.
The signing took place at the State House in Alausa, Ikeja, yesterday, with Chapel Hill Denham serving as the primary issuing house.
According to Lagos State Governor Babajide Sanwo-Olu, the money will be used to fund projects in the transportation, environment, and health sectors, including the Lagos-Badagry Expressway, the Lekki Regional Road, Epe Highway, Ijedodo road in Alimosho, Oba Sekumade road in Ikorodu, Demurin, Kosofe, Soluyi Shomolu, and Iwaya, as well as drainage systems, to prevent flooding.
He guaranteed that the projects would be well-known and have an impact.
He said: “We will continue to uphold our commitment to remain the most responsible issuer in the Nigerian Capital Market. We will continue to raise the bar, live within the tenets of our promise to our citizens, and continue to ensure that our Greater Lagos agenda is on track and deliverable”.
He noted that the completion of this process will raise the total value of bonds issued under Lagos State’s 500 billion debt issuance program to 377.715 billion.
While also speaking, the Commissioner for Finance, Dr Rabiu Olowo, stated that Lagos has set a new record in the domestic bond market, adding that the original amount sought by the state was oversubscribed, demonstrating the state’s integrity and the current administration’s leadership capacity.
“We set out to raise N125 billion, but at the end of the exercise, total bid represented about 117 per cent over subscription of the intended amount, Olowo said, stating that this strong response from the investing community to “our administration’s bond issuance is humbling, and it is indeed a testament of the continued investor confidence in the state’s ability to deliver on its infrastructural and socio-economic development objectives, as well as our ability to meet our funding obligation in the medium to long term”.
Kemi Awodehin, Managing Director of Chapel Hill Delham, who represented other issuing companies, also commended the government for trusting them to raise funds for vital projects in the state.
The signing process included 24 issuing houses, 18 trustees, six solicitors, eight banks, and two rating firms.