Mr. Babajide Sanwo-Olu, governor of Lagos State, stated on Monday that all statutory instruments that will enable the state government to raise N137.328 billion in bonds from the capital market to deliver critical infrastructure in critical sectors of the economy have now been met.
Sanwo-Olu, who presided over the ceremony in which the state’s Attorney General, issuing parties, and trustees of the funds signed the necessary documents required by the Securities and Exchange Commission (SEC) to facilitate the issuance of a 13% fixed rate bond, made this known.
The event marked the third time the Lagos Government would issue a 10-year bond (2021-2031), for a total value of N377.715 billion from the Lagos State’s Series IV N500 Billion Debt Issuance Programme.
The state intended to raise N125 billion from the capital market but ended up with N137.3 billion due to oversubscription.
He stated that the bond proceeds would be used to finance key infrastructure projects in healthcare, the environment, and road construction, such as the 10-kilometer Eti Osa Regional Road, the six-lane Lekki-Epe Expressway, the Ijeododo Road in Alimosho, and the Oba Sekumade Road in Ikorodu, among others.
According to him, the iconic projects for which the funds would be earmarked would improve residents’ quality of life while also creating a more enabling environment for commercial and economic activities.
“With the issuance of the largest bond ever issued by a sub-national government in Nigeria, Lagos marks yet another milestone in the domestic debt capital markets.”
“The signing ceremony completes the issuance of a N137.3 billion bond at a fixed rate of 13% as part of our Series IV Bond Issuance under the N500 billion Fourth Debt Issuance Programme.”
“We planned to raise up to N125 billion, but we were unable to do so.”
“This humbling achievement demonstrates investors’ continued confidence in the State’s ability to deliver on its infrastructural and socioeconomic development objectives, as well as meet repayment obligations,” the governor said.
“In keeping with our vision of creating a Greater Lagos, the proceeds of this bond will be used to finance infrastructure projects, primarily in roads, the environment, and healthcare.” These projects include a 10-kilometer Regional Road in Eti Osa, a six-lane Lekki-Epe Expressway, Ijeododo Road in Alimosho, and Oba Sekumade Road in Ikorodu.
These will help to improve the standard of living for our people while also creating a more conducive environment for commercial and economic activity,” he added.
Governor Sanwo-Olu stated that the previous intervention capital raised to justify the cost of investment in critical sectors had resulted in multiplier effects in socioeconomic activities.
He stated that Lagos had maintained strict discipline in terms of the size and pricing of its bonds.