The Lagos State Government has unveiled ambitious plans to deploy a substantial N244.82 billion raised through its recent bond issuance into critical infrastructure projects across multiple sectors.
Record-Breaking Bond Achievement
Governor Babajide Sanwo-Olu made the announcement during the bond-signing ceremony organized by the state's Ministry of Finance and Debt Management Office over the weekend. The governor revealed that this latest issuance now stands as the largest bond ever floated by the state and represents the biggest bond issuance by any subnational government in Nigeria's history.
Sanwo-Olu emphasized his administration's commitment to responsible financial stewardship, thanking investors for their continued confidence in Lagos State. He noted that the event marked the final documentation stage for both the state's green bond and conventional bond under the Lagos State N1 trillion Debt and Hybrid Instruments Issuance Programme.
Investor Confidence Exceeds Expectations
The bond issuance witnessed overwhelming investor response that surpassed all initial targets. The Series Four conventional bond, which initially targeted N200 billion, attracted massive interest, closing with total bids amounting to N310.06 billion, with N304 billion coming within the advised price range.
This extraordinary show of confidence enabled the state to activate the green issuance option, ultimately allowing Lagos to raise N230 billion through the conventional bond. Meanwhile, the state's pioneering green bond initiative saw Lagos successfully issue Nigeria's first subnational green bond, raising N14.815 billion.
The green bond attracted total bids of N29.29 billion, with N27.79 billion falling within the advised pricing guidance. Governor Sanwo-Olu described this response as clear validation of the state's environmental vision under the second pillar of the THEMES+ Agenda.
Strategic Allocation Across Key Sectors
The substantial bond proceeds will be strategically channeled into vital infrastructure areas that directly impact residents' quality of life. The funds will support development in:
- Transportation infrastructure improvements
- Housing development projects
- Environmental sustainability initiatives
- Healthcare facility upgrades
- Education sector enhancements
According to Finance Commissioner Abayomi Oluyomi, the project selection process involved deliberate and rigorous efforts to fund initiatives that align with United Nations Sustainable Development Goals while delivering measurable environmental impact.
The administration remains fully committed to upholding the trust placed in the state by investors and ensuring that the bond proceeds effectively drive sustainable and inclusive growth across Lagos State.
