Lagos state govt prepares to launch N214.8 Billion bonds, aiming to attract investors

The Lagos state government is preparing to launch a substantial bond issuance amounting to N214.8 billion, the largest of its kind by a sub-national entity in Africa. This bond consists of two segments: Series III, which includes a N14.815 billion Green Bond, marking Nigeria’s first environment-focused bond issued by a sub-national and a conventional bond valued at N200 billion.

During an Investor Forum held at Eko Hotel and Suite, Governor Babajide Sanwo-Olu emphasized the importance of ongoing support from private investors for the state’s development. He highlighted the need for infrastructure to accommodate Lagos’s growing population and expanding economy. The governor reassured prospective investors of the state’s financial reliability and its strong dedication to progress, noting that Lagos has a proven history and the capability to execute essential infrastructure projects.

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Governor Babajide said; “There are enormous opportunities in Lagos for sustainable growth. With more funding, we can do a lot more. Inflation and rising costs will always be a factor, but your investment today secures tomorrow’s progress.”

The Governor noted that Lagos has maintained a tradition of continuity, with successive administrations building on past achievements, and reiterated the security of investor funds.

While addressing the gathering also, Commissioner for Finance, Mr. Abayomi Oluyomi, highlighted Lagos’ longstanding fiscal responsibility, stating that government is set to issue a new series of bonds to fund infrastructure development and promote environmental sustainability.

The total bond issuance is N214.8 billion, which is in two categories: a N200 billion, 10-year bond targeted at 24 infrastructure projects across nine ministries, departments, and agencies (MDAs). These MDAs cut across housing, health, environment, agriculture, transportation, innovation, science & and technology.

The second is a N14.815 billion green bond – the first of its kind by a sub-national government in Nigeria. The proceeds from the green bond will be channelled into environmentally sustainable initiatives such as renewable energy, climate change adaptation, and sustainable water and wastewater management.

Speaking in the same epitome, CEO of Chapel Hill Denham Advisory Services Limited, Mr. Bolaji Balogun declared that, “Lagos is first among others, not only in this country, but on this continent, that is why we feel confident pushing the envelope and asking the investing markets to work with us to raise 200 billion naira of capital,”

Over the last 17 years, Lagos has issued in dollar equivalent more than $3.1 billion of bonds in Nigeria’s capital markets without failing in its commitment, a credibility that should be complemented.

Furthermore, Mr. Balogun state that the bonds will be launched next week, and will be open for approximately five days. “We hope to price these instruments and to deliver proceeds to Lagos state within 15 to 20 days from today,” he said.