Lagos Raises 137.3 Billion Naira Bond To Finance Lagos-Badagry Expressway, Lekki Regional Road and Others

The Lagos State government has raised a one hundred and thirty seven point three-two- eight billion naira bond
to finance key infrastructural projects in the state.

The thirteen percent 2021/2031 Fixed Rate Bond Series IV Bond Issuance, under the N500 Billion Fourth Debt Issuance Programme is adjudged to be the largest single bond in the Nigerian domestic market.

The proceeds of Bond will be expended to finance projects in the transportation, environment and Health Sectors, including the Lagos-Badagry Expressway, the Lekki Regional road, Epe Highway, Ijedodo road in Alimosho, Oba Sekumade road in Ikorodu, Demurin, Kosofe, Soluyi Shomolu, Iwaya, as well as drainage systems to curb flooding across the state.

Governor Sanwo who made this known during the signing of the Bond certificates at the Lagos House Ikeja, promised that the projects to be financed by the proceeds of the Bond would be visible and impactful.

“We will continue to uphold our commitment to remain the most responsible issuer in the Nigerian capital market, for us is to continue toto raise the bar, live within the tenets of our promise to our citizens and continue to ensure that our greater Lagos agenda is on track and deliverable. The conclusion of this process will bring to 377.715 Billion the total value of bond issued from the Lagos State 500 Billion Debt issuance programme” the Governor said

In his remarks, the Commissioner for Finance, Dr Rabiu Olowo, who said Lagos has set a new record in the domestic bond market, announced that the initial amount sought by the State was oversubscribed, an indication of the State’s credibility and the leadership ability of the current administration.

He said ” We set out to raise one hundred and twenty-five billion naira and at the conclusion of the exercise a total of the bids represented about a hundred and seventeen percent over subscription of the intended amount. This strong response from the investing community to our administration’s bond issuance is humbling and it is indeed a testament of the continued investors confidence in the State’s ability to deliver on its infrastructural and socio-economic developmental objectives and our ability to meet our funding obligation in the medium to long term”

A representative of the issuing houses, Ms Kemi Awodehin, thanked the state government for the confidence reposed in them to raise finance for key projects in the state.

24 issuing Houses, 18 Trustees, 6 Solicitors, 8 Banks and 2Rating were involved in the Bond issuing process.

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