Lagos raises N244.8 billion, sets record with landmark Bond issuances

By Kazeem Ugbodaga

The Lagos State Government on Thursday successfully concluded two major bond issuances worth a combined N244.815 billion, setting new benchmarks in Nigeria’s domestic capital market and reinforcing the state’s leadership in innovative infrastructure financing.

The first, a N14.815 billion Series III Green Bond, marks Lagos as the first sub-national entity in Nigeria to issue a certified green bond under a public debt programme.

This was followed by a N230 billion Series IV Conventional Bond, now recorded as the largest sub-national bond issuance in Sub-Saharan Africa.

The events were held in Victoria Island, with Governor Babajide Sanwo-Olu, members of the State House of Assembly, the Executive Council, investment stakeholders, and representatives from the Debt Management Office (DMO) in attendance.

Governor Sanwo-Olu described the issuance as historic, noting that the five-year fixed-rate instruments attracted unprecedented investor demand.

The Series III Green Bond received N29.29 billion in bids, almost double the offer, while the Series IV Conventional Bond drew N310.06 billion in bids, prompting the state to expand the issuance beyond its initial N200 billion target through a green-shoe option.

Speaking on the occasion, Sanwo-Olu said, “Through the Series III Green Bond, we are financing projects that promote climate-friendly infrastructure, sustainability, and the long-term resilience of our environment. These projects align with the UN Sustainable Development Goals and have measurable environmental benefits.”

He added that the proceeds of both bonds will fund critical infrastructure, including the expansion of the Blue and Red Rail Lines to ease urban mobility, construction of the Lekki-Epe Airport Road, development of affordable housing schemes, upgrading healthcare facilities including a 280-bed hospital, solar power installations across schools, and the establishment of agro-produce hubs to enhance food security.

The State Commissioner for Finance, Abayomi Oluyomi, highlighted that both issuances meet global sustainability benchmarks and reaffirm Lagos’ position as a leading sub-national performer in Nigeria’s debt market. He stressed the government’s commitment to transparency, accountability, and prudent management of public funds.

Bolaji Balogun, CEO of Chapel Hill Denham, praised Lagos for maintaining world-class transparency and compliance standards, noting that the state achieved two market firsts, the first certified sub-national green bond in Africa and the largest sub-national bond issuance in the region.

Private Sector Development Adviser, Temilola Akinrinade, also highlighted the success as evidence of investor confidence in Lagos’ governance and Nigeria’s broader economic reforms, citing the long-standing collaboration with the UK government on green finance initiatives.