Lagos raises N137bn bond to finance six-lane Lekki-Epe expressway, Ikorodu roads

Babajide Sanwo-Olu, governor of Lagos, signed N137.3 billion 10-year bond to raise funds to finance key infrastructural projects.

The governor presided over the ceremony on Monday where necessary documents required by the Securities and Exchange Commission (SEC) to facilitate the issuance of 13 percent fixed-rate bond were signed by the state’s attorney general, issuing parties, and trustees of the funds.

The event also marked the third time the Lagos Government would be issuing a long-tenure bond of 10 years (2021-2031), bringing to a total value of N377.715 billion bond issued from the Lagos State’s Series IV N500 Billion Debt Issuance Programme.

The state set out to raise N125 billion from the capital market but closed the bids with N137.3 billion, following oversubscription.

“Lagos once again marks another milestone in the domestic debt capital markets, with the issuance of the largest bond ever by a sub-national Government in Nigeria,” the governor said.

“The signing ceremony finalises the issuance of N137.3 billion bond at 13 percent fixed rate in our Series IV Bond Issuance under the N500 Billion Fourth Debt Issuance Programme.

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“We set out to raise up to N125 billion, but we closed the book with bids totalling N137.3 billion. This is a strong response from the investing community to our administration’s debut bond issuance.

“This humbling achievement is a testament to continued investors’ confidence in the State’s ability to deliver on its infrastructural and socio-economic developmental objectives, and also to meet repayment obligations.”

According to the governor, this demonstrated a “strong response” from the investing community and testified to the confidence of investors in the state’s ability to deliver on its infrastructural and socio-economic developmental objectives, while meeting repayment obligations.

The governor explained that the bond would be used to finance infrastructure projects in healthcare, environment, and road construction.

Sanwo-Olu said the projects would contribute to a better quality of living for the residents and create enabling environment for commercial and economic activities.

“In line with our vision to build a Greater Lagos, proceeds from this bond will be used to finance infrastructure projects, primarily in roads, environment, and healthcare,” he added.

“These projects include 10-km regional road in Eti Osa, six-lane Lekki-Epe expressway, Ijeododo Road in Alimosho, and Oba Sekumade Road in Ikorodu.

“These will contribute to a better quality of living for our people, while also creating a more enabling environment for commercial and economic activity.”

The Cable