Lagos Unveils N214.8bn Bond Offers To Fund Infrastructure, Climate Projects

The Lagos State government has opened the book building for its dual bond offerings: a N200 billion Series IV Bond and a N14.815 billion Series III Green Bond, under its N1 trillion Debt and Hybrid Instruments Issuance Programme. This move aims to bolster infrastructure financing and advance climate-resilient development across the state.

According to details released by the Joint Issuing House, Afrinvest Securities Limited, both offers opened on November 6, 2025, and will close on November 13, 2025. The issuances, which are the state’s largest combined offering to date, are structured as fixed-rate, semi-annual coupon instruments to be repaid on an amortised basis after a 24-month moratorium period.

The N200 billion Series IV Bond will be applied towards financing priority physical and social infrastructure projects, while proceeds from the N14.815 billion Green Bond, the state’s maiden sustainability issuance, will be channeled into climate-resilient and environmentally sustainable initiatives.

Projects under the Green Bond include flood mitigation and drainage systems, renewable energy installations, sustainable waste and water management, and urban greening initiatives identified in the Lagos State Climate Action Plan (2021–2025). The issuance aligns with the International Capital Market Association’s (ICMA) Green Bond Principles (2021), is certified by the Climate Bonds Initiative (CBI), and has received a Second-Party Opinion from Agusto & Co., validating its sustainability credentials and compliance with global standards.

Lagos State, Nigeria’s economic hub and largest subnational economy, contributes about 20 percent of the country’s GDP and continues to post impressive revenue performance. The state’s internally generated revenue (IGR) rose by 105 percent to approximately N2 trillion as of December 31, 2024, underscoring its strong tax administration framework and minimal reliance on federal allocations.
Both bond tranches are backed by an Irrevocable Standing Payment Order (ISPO) and a Consolidated Debt Service Account (CDSA) funded from the state’s IGR, a structure that assures timely payment and investor protection.

The state retains strong credit ratings of Aa- from Agusto & Co. and AA- from GCR, reflecting its diversified economy, prudent fiscal management, and consistent capital investment in infrastructure and social development. The ratings also highlight the government’s effective control of recurrent expenditure and its robust capacity to meet debt obligations as they fall due.

Under the terms of the offer, the Series IV Bond carries a book-build price range of 16.15 to 16.25 per cent for a 10-year tenor, while the Series III Green Bond is priced between 15.90 and 16.00 per cent for a 5-year tenor. Minimum subscription for each offer is N10 million (10,000 units at N1,000 per unit), with additional multiples of N1 million thereafter.

Upon completion, both instruments will be listed on the Nigerian Exchange Limited (NGX) and/or the FMDQ Securities Exchange Limited.