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Lagos nets N57.5bn from bond market

By Olasunkanmi Akoni & Monsur Olowoopejo

LAGOS —THE Lagos State government has realised about N57 .5 billion from the sales of N50 billion bonds to investors at a fixed rate of 10 per cent in the second tranche of the N275 billion debts issuance programme.

According to the state government, the amount represents 249 per cent over the N50 billion mandate given by the state government to the book runners, led by Chapel Hill Denham Management.

The state government in the first tranche of the initial offer of N57.5 billion recorded an over subscription of bond by 117.93 per cent.

At the completion board meeting in Lagos, Governor Babatunde Fashola said result of the just concluded bond offer was nothing but a clear indication that the investing public was keen to partnering with the government in ongoing transformation.

According to him, “what our beloved state has accomplished by these bond issuances is no mean feat. We are thrilled by it. We are, in all humility, proud to be partnering with all the stakeholders to build a state in which we all have an opportunity to thrive, and bequeath a brighter and rewarding future to the next generation.”

Represented by his Deputy, Princes Adebisi Sosan, the state governor said: “The state remains the only sub-national entity within Nigeria to score the many firsts by the feat, including the first to undertake successive bond issuance during the tenure of the same administration; the first to issue a bond without an Irrevocable Standing Payment Orders; the first to issue a bond without any under-writing arrangements and the first to undertake an offering by way of a ‘book build’.”

The governor said different projects were being undertaken with proceeds from the bond, adding: “A major project which is a construction plan is at an advanced stage. It is the upgrading of the Lagos-Badagry Expressway into a 10-lane highway, featuring pedestrian walkways, bus routes and a rail line. With bond proceeds, the potential of our water transportation project will be maximized. This is already ongoing in ferry terminals at Ikorodu, Badore and Osborne.”


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