Lagos raises N137.3bn bond to address key infrastructure deficit


L-R: Lagos State Governor, Mr. Babajide Sanwo-Olu and Commissioner for Finance, Dr. Rabiu Olowo during the signing of the Lagos State Bond Issuance programme at the Banquet Hall, Lagos House, Alausa, Ikeja, on Monday, December 20, 2021.

Lagos State Government on Monday signed a N137.3 billion 10-year bond to raise funds to finance key infrastructural projects in the state.

The 13 per cent Fixed Rate Series IV Bond Issuance, under the N500 billion Fourth Debt Issuance Programme, is adjudged to be the largest single bond in the Nigerian domestic market.

Governor Babajide Sanwo-Olu signed the bond at the State House, Alausa, Ikeja, with Chapel Hill Denham as the major issuing house.

In all, there were 24 issuing houses, 18 trustees, six solicitors, eight banks and two rating firms. They were all involved in the signing process.

According to the governor, the funds would be used to finance 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, Iwaya, as well as drainage systems to curb flooding.

Sanwo-Olu assured that the projects would be visible and impactful.

He said his administration would continue to uphold its commitment to remain the most responsible issuer in the Nigerian capital market.

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Sanwo-Olu added that his government would continue to raise the bar, live within the tenets of its promise to the citizens, and continue to ensure that the greater Lagos agenda is on track and deliverable.

“The conclusion of this process will bring to N377.715 billion the total value of bond issued from the Lagos State 500 billion debt issuance programme,” he explained.

Commissioner for Finance, Dr Rabiu Olowo, stated that with the bond, Lagos has set a new record in the domestic bond market.

He said the initial amount sought by the state was oversubscribed, an indication of the state’s credibility and the leadership ability of the current administration.

According to him, the government has set out to raise N125 billion, but that at the end of the exercise, total bid represented about 117 per cent over subscription of the intended amount.

He said the strong response from the investing community to its administration’s bond issuance is humbling, and that it was indeed a testament of the continued investors’ confidence in the state’s ability to deliver on its infrastructural and socio-economic development objectives, as well as its ability to meet its funding obligation in the medium to long term.

Also speaking, the Managing Director of Chapel Hill, Ms. Kemi Awodehin, who represented other issuing houses, thanked the government for the confidence reposed in them to raise finance for key projects in the state.

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