Sanwo-Olu: Lagos To Invest N244.82bn Bond Proceeds In Critical Infrastructure

The Lagos State government has planned to channel the proceeds from its recent bond issuance, totalling N244.82 billion, into critical infrastructure development.

The funds will be invested in key sectors, including transportation, housing, environmental sustainability, healthcare, and education, to drive sustainable and inclusive growth in the state.

This was stated at the signing ceremony of the Series III Green Bond and Series IV Conventional Bond under the N1 trillion debt and hybrid instruments issuance programme, held yesterday in Lagos, to which government officials, financial institutions, and investors attended.

Lagos State Governor, Babajide Sanwo-Olu, expressed gratitude to investors for their confidence in Lagos State and pledged to ensure prudent management of public resources.

He said, “We are here to finalise the documentation for the issuance of our Green Bond and Conventional Bond as part of the Lagos State N1 trillion Debt and Hybrid Instruments Issuance Programme.”

According to him, since our administration took office, our journey in bond issuance has been pioneering. The first bond we issued in 2020, valued at approximately N100 to N110 billion, marked a record at the time. Each subsequent bond has surpassed its predecessor, and today, we embark on another groundbreaking opportunity.

Sanwo-Olu stated that “Lagos State has issued Nigeria’s first subnational Green Bond, securing N14.815 billion. This affirms our vision for environmental responsibility aligned with the second pillar of our THEMES+ Agenda and our long-term goal of constructing a Lagos that is prosperous, resilient, and environmentally secure for future generations.”

He added that “this issuance now stands as the largest bond issuance in Lagos State’s history and indeed for any subnational government in Nigeria. It serves as a testament to the vision, governance, and fiscal discipline present within Lagos State. We deeply value this trust and are wholly committed to honouring it.”

He pointed out that the proceeds from this issuance will be strategically invested in vital infrastructure areas, including transportation, housing, environmental sustainability, healthcare, education, and other key sectors that will empower Lagos to continue its trajectory of sustainable and inclusive growth.

The Commissioner of Finance for Lagos State, Abayomi Oluyomi, noted that the comprehensive project selection process for this bond reflects the state’s determination to finance initiatives that align with the United Nations Sustainable Development Goals (SDGs) and produce measurable environmental benefits.

He explained that “the impressive issuance of the Series IV Conventional Bond. Initially targeting N200 billion, Lagos State successfully raised N230 billion. This oversubscription underscores strong investor confidence, despite regulatory thresholds that limited the ultimate size of the issuance.

“With a benchmark now approaching N300 billion and potentially reaching N500 billion in the future, we are optimistic that upcoming issuances will continue to attract robust market interest.”

He pointed out that these accomplishments reflect Lagos State’s commitment to responsibly accessing and utilising the domestic capital market, while demonstrating the sustained confidence investors have in our economy. He stated that the proceeds from these issuances will be directed toward vital infrastructure and social projects.

CEO of Chapel Hill Denham, the lead issuer, Bolaji Balogun, stated that while many states in Nigeria face challenges in issuing bonds due to transparency and compliance issues, Lagos stands out as a beacon of best practices and innovation.

He noted that “this N230 billion issuance marks not only the largest ever by a sub-national entity in Nigeria but also the most substantial issuance by any entity, aside from the national government. Furthermore, being the first sub-national in Africa to issue a Green Bond is a remarkable milestone.”