Infrastructure deficit: Lagos raises N137.3bn in bond sales
All necessary documents required by the Securities and Exchange Commission (SEC) to facilitate the issuance of Lagos State’s N137.3billion 13 per cent fixed-rate bond have been signed by the state Attorney General, Mr Moyosore Onigbanjo, SAN; the issuing parties and trustees of the funds. The event presided over by Governor Babajide Sanwo-Olu marked the third […]
All necessary documents required by the Securities and Exchange Commission (SEC) to facilitate the issuance of Lagos State’s N137.3billion 13 per cent fixed-rate bond have been signed by the state Attorney General, Mr Moyosore Onigbanjo, SAN; the issuing parties and trustees of the funds.
The event presided over by Governor Babajide Sanwo-Olu marked the third time Lagos Government would be issuing a long-tenure bond of 10years (2021-2031), bringing to a total value of N377.715billion bond issued from the State’s Series IV N500billion Debt Issuance Programme.
The state set out to raise N125billion from the capital market but closed the bids with N137.3billion, following oversubscription.
According to Governor Sanwo-Olu, the development demonstrated a strong response from the investing community and testified to the confidence of investors in the state’s ability to deliver on its infrastructural and socio-economic developmental objectives, while meeting repayment obligations.
The governor disclosed that proceeds from the bond would be used to finance key infrastructure projects in healthcare, environment and road construction, including the 10-km Regional Road in Eti Osa, six-lane Lekki-Epe Expressway, Ijeododo Road in Alimosho and Oba Sekumade Road in Ikorodu, among others.
The Commissioner for Finance, Dr Rabiu Olowo, gave a summary of the bid book in respect to the bond, pointing out that 319 bids were submitted during the offer period, while total bids at N146.328billion value were received.
Olowo added that N137.328billion qualified under the terms of the offer at the clearing price of 13 per cent per annum.