By Olasunkanmi Akoni
Lagos State Governor, Mr Babajide Sanwo-Olu, yesterday, approved the issuance of N100 billion Bond, the third in its series aimed at improving infrastructure in the state. It is the largest bond issuance by any sub-national in Nigeria.
Recall, the state government had previously issued bonds under N107.5billion and N167.5billion programmes, respectively.
The latest bond, which is already over- subscribed, is under the state’s N500 billion bond issuance programme slated to mature in December 2023.
Speaking at the event at the Lagos House, Alausa, Ikeja, Sanwo-Olu, assured residents of judicious use of the bond proceed to improve the state infrastructure, adding that prosperity of the state was paramount to his administration.
He said, “We are doing things and it is about prosperity of the state. We made commitment to Lagosians that we will create a greater Lagos. This Bond has helped us to restructure our financial balance sheet. We want to assure Lagosians we will not put their confidence in us to shame. We will ensure Lagosians feel the effect of this intervention in the schools, hospitals and infrastructure we are going to build.
“We really appreciate the investing community, whose sustained support of Lagos State continues to spur our resolve to deliver on a Greater Lagos. Our achievement of a very solid outing in terms of the tenure, size and pricing of the Bond, positions Lagos State as very active participant in the development of our domestic capital markets. We remain resolute to upholding our commitment to being the most responsible issuer in the Nigerian markets.”
While appreciating the support of the issuance Houses, the Commissioner for Finance, Lagos State, Dr. Rabiu Olowo, said the Bond which is at 12.25 per cent, is the largest Bond issuance by any sub-national in Nigeria.
“We acknowledge the unwavering support of investors to the significant growth witnessed by Lagos State, given that the monies raised through our Bonds are being committed to the development of physical and social infrastructure, for the benefit of us all.
’Our partners, especially the issuing houses led by Chapel Hill Denham, have worked tirelessly with us to deliver another successful outcome on this landmark transaction.
“We also acknowledge the support received in the issuance process from the Federal Ministry of Finance, the Securities and Exchange Commission and Debt Management Office. The new funding will be applied towards the execution of key infrastructure projects across the state.”