Lagos State has unveiled the largest bond ever issued by any sub-national government in Africa, valued at N214.8 billion. The bond, announced during the Investor Forum on the Series III Green Bond and Series IV Bond Issuance under the One Trillion Debt and Hybrid Instrument Issuance Programme, was held on Friday at Eko Hotel and Suites.
The issuance is split into two categories: a N200 billion conventional bond and a N14.815 billion green bond, which is the first environmental sustainability bond to be issued by any sub-national government in Nigeria.
Governor Babajide Sanwo-Olu, addressing investors at the event, called for continued private sector support to develop key infrastructure needed to meet the demands of Lagos’ growing population and economy.
He assured investors of Lagos State’s financial credibility and commitment to development, noting that the state has the track record and capacity to deliver on major projects.
“There are enormous opportunities in Lagos for sustainable growth. With more funding, we can do a lot more. Inflation and rising costs will always be a factor, but your investment today secures tomorrow’s progress,” the governor said.
He emphasised that Lagos has maintained a tradition of continuity, with successive administrations building on past achievements, and reiterated the security of investors’ funds.
In his remarks, the Commissioner for Finance, Mr. Abayomi Oluyomi, highlighted the state’s fiscal discipline and explained that the N200 billion conventional bond will fund 24 infrastructure projects across nine ministries, departments, and agencies, covering housing, health, environment, agriculture, transportation, innovation, science, and technology.
He also stated that proceeds from the N14.815 billion green bond will be used for renewable energy, climate change adaptation, and sustainable water and wastewater management.
Mr. Bolaji Balogun, CEO of Chapel Hill Denham Advisory Services Limited, praised Lagos for its leadership, saying, “Lagos is first among others, not only in this country, but on this continent, that is why we feel confident pushing the envelope and asking the investing markets to work with us to raise 200 billion naira of capital.”
Balogun revealed that Lagos has issued more than $3.1 billion in bonds over the last 17 years without defaulting, which should give investors confidence. He added that the bonds will be launched next week and open for about five days, with the proceeds expected to be delivered to the state within 15 to 20 days.
He further noted that Lagos maintains a debt-service-to-revenue ratio of 19.2 per cent, which has earned it a local credit rating of A1+ and a reaffirmed AAA rating from Fitch Ratings, attributing this to the Debt Management Office’s performance.
