Babajide Sanwo-Olu, Governor of Lagos State
In a significant move, Governor Babajide Sanwo-Olu has affixed his signature to the tune of N134.815 billion bonds. The Governor has expressed his confidence that this move will pave the way for the realization of crucial infrastructure projects in Lagos.
During Tuesday’s signing ceremony, Mr. Sanwo-Olu announced that a project to revamp 33 public schools in the Tolu Complex region of Ajegunle (Olodi Apapa) would be among the initiatives undertaken.
According to the governor, the state has successfully issued a 10-year tenure bond valued at N115 billion with a 15.25% interest rate.
This marks the fourth issuance under the Debt and Hybrid Issuance Programme, which was duly approved by the State House of Assembly.
According to Mr. Sanwo-Olu, the second instrument is a shariah compliant bond with a seven-year tenure valued at N19.815 billion and a fixed return forward-ijarah lease sukuk rate of 14.675%.
This marks a significant milestone as it is the first shariah compliant instrument to be issued by Lagos and is scheduled to mature by 2030.
According to the official, this recent development marks yet another noteworthy achievement for his administration in providing the necessary infrastructure to stimulate economic expansion throughout the region.
The governor has announced that two bond issuances will serve as a catalyst for his administration to further advance its development agenda in key sectors of the state.
He emphasized that the funds generated from the bond and Sukuk will be allocated towards projects that have already been scrutinized by the Securities and Exchange Commission.
The Lagos governor expounded that a number of projects are underway, including a substantial revamp of 33 public schools located in the Tolu region of Ajegunle, as well as continuing road infrastructure initiatives along the Lekki-Epe corridor.
A considerable portion of the funds will be allocated towards drainage infrastructure and the fortification of sea and lagoon embankments, with the aim of safeguarding the environment from the adverse effects of climate change.
In addition, it was revealed that a portion of the earnings will be allocated towards the Infectious Disease Research Centre located at the esteemed Infectious Disease Hospital situated in Yaba.
The development of agricultural capacity to sustain the populace is currently underway. As per the statement of the speaker, a portion of the earnings will be allocated towards the various initiatives aimed at establishing prominent food markets.
According to the Finance Commissioner, Rabiu Olowo, the issuances made by Lagos have effectively showcased its position as a ‘Category A Issuer’. This has further reinforced the confidence of investors in the state’s capacity to efficiently utilize the proceeds towards the execution of government projects.
Lagos has reportedly raised a whopping N135 billion bond within a mere 14-day period, according to Chapel Hill Denham, a lead issuing house.
The oversubscription of the bond is being touted as a clear indication of investors’ unwavering confidence in the state.