Infrastructure: Lagos Raises N134.8 Billion Long-Tenure Bonds In Capital Market

The Lagos State government has raised N134.8 billion long-tenure bonds in capital market for infrastructure development.

The instruments were signed by Governor Babajide Sanwo-Olu, on Tuesday.

The transaction instruments are for the first sets of allotment in the N1 trillion Debt and Hybrid Issuance Programme.

This includes a N115 billion 10-year 15.25 percent Series 1 Bond Issuance due 2033 and N19.815 billion 7-year 14.675 percent Fixed Return Forward-Ijarah Lease Sukuk due 2030.

According to Sanwo-Olu, the investment would fuel key infrastructure projects in sectors such as education, electricity, roads, and agriculture.

With the proceeds from the bond and Sukuk, the governor said the state would be executing various projects pre-inspected by the Securities and Exchange Commission (SEC), adding that these includes overhauling 33 public schools in Ajegunle, road infrastructure on the Lekki-Epe corridor, drainage works, and more.

The investments, he also noted, would not only boost infrastructure development but would stimulate economic growth, create job opportunities, and enhance the quality of life for Lagos residents.

Sanwo-Olu said: “As we renew our mandate in the coming days, these two issuances will provide the impetus for my administration to further drive our THEMES agenda. Proceeds from the Bond and Sukuk will enable various Ministries, Departments and Agencies, including the Ministry of Energy and Mineral Resources, Ministry of Agriculture, the Office of Drainage and Water Resources, Ministry of Works and Infrastructure, Ministry of Education, Ministry of Health, and Ministry of Waterfront and Infrastructure, to execute respective projects that have been pre-inspected by the Securities and Exchange Commission and issuing houses.

“Some of the projects include massive overhaul of 33 public schools in Itolu area of Ajegunle and ongoing road infrastructure projects on the Lekki-Epe corridor. Significant part of the funds will be used for drainage works, sea and lagoon embarkment to protect environment from climate issues. In health, we are using part of the proceeds to kick off our Infectious Disease Research Centre at Infectious Diesease Hospital in Yaba, because of the experience we had with coronavirus. We are building agricultural capability to feed our people. Part of the proceeds is going to all the activation we have been doing around constructing major food markets.”

The Commissioner for Finance, Dr. Rabiu Olowo, said the transaction shows the resilience of the domestic debt capital market, which the state has leveraged on in its quest to build a Greater Lagos for the future generations.

He said: “The transaction reflects the resilience and depth of the domestic debt capital market, which Lagos has been able to rely on in our quest to build a Greater Lagos for generations to come. Aside democratic process, the validity of a government’s credibility is when discerning, shrewed business people, investors willingly put their money to support the development agenda of a State.”