Governor of Lagos state

Lagos raises N137.3b bond to fund infrastructure

Lagos State has signed a 10-year Bond to raise N137.3billion to finance key infrastructural projects in the state.

The 13 per cent Fixed Rate 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 signing held yesterday at the State House, Alausa, Ikeja, with Chapel Hill Denham as the major issuing house.

Lagos State Governor, Babajide Sanwo-Olu said the money would be used 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.

He promised that the projects would be visible and impactful.

He said: “We will continue to uphold our commitment to remain the most responsible issuer in the Nigerian Capital Market. We will continue to 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.

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He pointed out that the conclusion of this process will bring to 377.715 billion the total value of bond issued from the Lagos State’s 500 billion debt issuance program.

The Commissioner for Finance. Dr Rabiu Olowo,  said Lagos has set a new record in the domestic bond market, stating that the initial amount sought by the state was oversubscribed, indicative of the state’s credibility and the leadership ability of the current administration.

“We set out to raise N125 billion, but at the end of the exercise, total bid represented about 117 per cent over subscription of the intended amount, Olowo said, stating that this strong response from the investing community to “our administration’s bond issuance is humbling, and it is indeed a testament of the continued investor confidence in the state’s ability to deliver on its infrastructural and socio-economic development objectives, as well as our ability to meet our funding obligation in the medium to long term.”

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Managing Director of Chapel Hill Delham, Ms. Kemi Awodehin, who represented other issuing houses, thanked the government for the confidence reposed in them to raise finance for key projects in the state.

24 issuing houses, 18 trustees, six solicitors, eight banks and two rating firms were involved in the signing process.

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