Lagos, Nigeria’s commercial capital is selling an NGN85.14 billion bond to fund infrastructural projects across the state.
The state has started various capital projects as well as ongoing projects inherited from the last administration.
According to Akinyemi Ashade, the state commissioner for finance, the bond consists of 46.37 billion naira 7-year debt at a 16.75% rate and 38.77 billion naira via a 10-year paper with 17.25% interest.
He added that “We value the reputation we have earned as the most responsible issuer in the Nigerian capital markets and thank everyone who has worked with us to deliver a successful outcome”.
Last year, the state raised NGN60 billion via another bond issue. Akinwunmi Ambode, the state governor at the bond presentation to investors had said the state plans to use the proceed to modernise the state transportation infrastructure via road, water and rail.
The latest borrowing is part of Lagos’ NGN500 billion borrowing programme launched last year.
Lagos remains Nigeria’s most economically viable state with over 55% of the value added tax, VAT, generated from the state. However, the state has major infrastructure deficit across the various socio-economic value chain.