LASG to deploy N244.82b bond proceeds into key sectors

LAGOS State Government has announced plans 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, with the aim of driving sustainable and inclusive growth in the state.

The state governor, Babajide Sanwo-Olu, who spoke at the state’s Ministry of Finance and Debt Management Office bond-signing ceremony held over the weekend, reaffirmed the state’s commitment to responsible financial stewardship and thanked the investors for the confidence they continue to show in Lagos State.

He noted that the event marked the final stage in the documentation for both the state’s green bond and its conventional bond under the Lagos State N1 trillion Debt and Hybrid Instruments Issuance Programme.

Sanwo-Olu said that the state’s bond-market trajectory had been characterised by steady breakthroughs since his administration assumed office.
He recalled that the first bond issued in 2020, valued at roughly between N100 billion and N110 billion, set a new benchmark at the time, and each subsequent issuance has exceeded the record set before it.

The governor described the latest round as yet another milestone in that progression, adding that Lagos State has now successfully issued Nigeria’s first subnational green bond, raising N14.815 billion.
However, the total bids amounted to N29.29 billion, with N27.79 billion falling within the advised pricing guidance, a response, the governor said, clearly validates the state’s environmental vision under the second pillar of the THEMES+ Agenda and advances Lagos’ long-term ambition of building a prosperous, resilient, and environmentally sustainable city.

He further highlighted that the Series Four conventional bond, which initially targeted N200 billion, drew overwhelming interest, closing with a total of N310.06 billion in bids, of which N304 billion came in at the advised price range.

He noted that this extraordinary show of investors’ confidence enabled the state to activate the green issuance option, ultimately allowing the state to raise N230 billion.

Sanwo-Olu, who emphasised that this latest issuance now represents the largest bond ever floated by the state and the biggest by any subnational government in Nigeria, described the achievement as a clear validation of the state’s vision, governance structure, and sustained fiscal discipline, adding that the administration remains fully committed to upholding the trust placed in the state by investors.

He also stated that the proceeds from this issuance would 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.

Lagos State Commissioner for Finance, Abayomi Oluyomi, has described the project selection process behind the state’s latest bond issuance as a deliberate and rigorous effort aimed at funding initiatives that align with the United Nations Sustainable Development Goals and deliver clear, measurable environmental impact.

He said that the state’s commitment to responsible financing is reflected in the outcome of the Series Four conventional bond, which, although initially set at N200 billion, ultimately enabled the government to raise N230 billion.

Also, CEO of Chapel Hill Denham, Bolaji Balogun, highlighted Lagos State’s exceptional position in a national landscape where many states struggle to issue bonds due to concerns around transparency and compliance.

Temilola Akinrinade, representing the Deputy High Commissioner and serving as Nigeria Finance and Investment Mobilisation Lead at the British High Commission, said Lagos’ successful dual issuance reflects deep investor confidence in both the state’s governance and the wider reforms being implemented across Nigeria.(Guardian)