N137.3b 10-year bond

The Governor of Lagos State, Mr. Babajide Sanwo-Olu, has signed a N137.3b 10-year bond to fund key infrastructure projects in the state.

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The debt instrument is part of the N500 billion fourth debt series, which runs from 2021 to 2031.

At the signing ceremony, which took place at the State House in Alausa in the presence of the 24 issuing houses and eight trustees, among others, the governor stated that the bond would finance critical infrastructure projects such as roads and healthcare.

The Lagos-Badagry Expressway, Lekki Regional Road, Ijeododo Road Rehabilitation, and the alternative route to Admiralty Circle Toll Plaza Rehabilitation are among them.

“In the last eight months, and with the unwavering support of our transaction advisers, we were able to accomplish this laudable feat — which appeared impossible to some observers.”

“We set out to raise N125 billion and received bids totaling N137.3 billion.”

“Despite a significantly oversubscribed book and active participation from a diverse range of institutional investors – including banks, pension fund administrators, asset managers, and corporates – this strong response from the investing community – to our administration’s debut bond issuance – is humbling and demonstrates investor confidence in the state’s ability to deliver on its infrastructure and socio-economic development goals, as well as meet repayment obligations.”

Given the current yield environment, the Series IV Issuance was kept at N137.3 billion and cleared at a coupon rate of 13% per annum.

“Only bids lower than the clearing bid were accepted,” he said.

The issuing houses were led by Kemi Awodehin, Managing Director Chapel Hill, Denam.

“It gives me great pleasure to preside over this ceremony and to welcome you all as Lagos State celebrates yet another milestone in the Nigerian domestic debt capital markets, with the issuance of the largest bond ever issued by a sub-national in Nigeria,” Sanwo-Olu added.

Following the debut of a 10-year instrument in 2017, this was the third time a sub-national had issued a long-term bond (10 years).

“We have gathered here to sign the necessary documents required by the Securities and Exchange Commission (SEC) to finalize the issuance of Lagos State’s 13 percent 2021/2031 Fixed Rate Bond Series IV Bond Issuance, as part of the N500 billion fourth debt issuance program.”

“At the conclusion of this process, the total value of bonds issued under the Lagos State N500 billion debt issuance program will be N377.715 billion.”

“The imperative to aggressively drive our THEMES agenda has been clear since the moment I formally accepted my mandate in May 2019.”

“We formally began this issuance process in April 2021 in order to adequately kick-start project funding.” ”

Also read: How to make N5000 daily without investment

The proceeds of the Bond will be used to fund critical infrastructure projects, primarily in roads and healthcare, in accordance with the state’s vision of creating a Greater Lagos.”

These include the rehabilitation of the Lekki Regional Road, the Ijeododo Road, and the alternate route to the Admiralty Circle Toll Plaza.

“These projects will enhance the quality of life for our people while also creating a more conducive environment for commercial and economic activity.”

There is no doubt — and previous interventions have shown this — that the multiplier social and economic effects will more than offset the investment cost.

“We would like to express our gratitude to the Federal Ministry of Finance, PenCom, and the Nigerian Debt Management Office for their assistance and collaboration.”

Our appreciation also extends to the Securities and Exchange Commission.” ”

We also want to thank the investing community for their ongoing support of Lagos State and our efforts to improve the social and economic well-being of all Lagos residents.”

“We will maintain our commitment to being the most responsible issuer in the Nigerian capital market,” we say in response to your enthusiastic response to our Bond offer.

In other news, Sanwo-Olu yesterday dedicated a nine-road network and a bridge in the state’s Kosofe area, which will serve 300,000 people.

The roads, which total 2.840km in length, are intended to improve connectivity in the Lagos mainland’s Kosofe area.

“Today bears witness to our administration’s promise to ensure continuity of governance by completing projects inherited from the previous administration, particularly those directly beneficial to the well-being of our people,” the governor said.

“In addition to launching new projects, we have spent significant resources completing several projects that span multiple sectors and the entire state.”

“The Soluyi Community is a strategic settlement with a rapidly growing population that necessitates the renewal of infrastructure.”

This prompted us to prioritize the completion of this 2.840km network of roads, including a bridge, that will serve a population of over 300,000 people in the Soluyi-Araromi-Ifako-Gbagada Communities.

“By completing these projects, our administration has demonstrated once again the highest priority that we place on the welfare and well-being of the people of Lagos, in accordance with our Greater Lagos Vision and the Traffic Management and Transportation Pillar of our THEMES Governing Agenda.”

“The ever-increasing population of Lagos, as well as the attendant increase in vehicular traffic volumes and axle loads, are partially to blame for the state’s road infrastructure problems.”

Our administration will continue to respond to this challenge by stepping up efforts in the areas of road and highway construction and rehabilitation, as well as transportation network expansion, with a renewed emphasis on our multimodal transportation strategy.

This is why we are determined to proceed with the Lagos Light Rail project, as well as the construction of jetties and the deployment of boats and ferries across the State.

This is why we are determined to proceed with the Lagos Light Rail project, as well as the construction of jetties and the deployment of boats and ferries throughout the State.”

I would like to implore the Community Development Association of this area to immediately take ownership and responsibility for the prudent use of these projects/roads.” You must always care for them with devotion and dedication, keeping them clean and the drainage free of waste.”

The Governor highlighted some of the roads’ benefits, which include providing an alternative route to the Third Mainland Bridge (TMB) and the Apapa-Oworonsoki Expressway via the Third Axial underpass, as well as addressing long-standing environmental and infrastructure issues.

Engr Aramide Adeyoye, Special Adviser to the Governor on Works and Infrastructure, welcomed the audience, saying, “For us, the driving force behind this is to ensure connectivity and reduce the burden and pressure on major arterial roads that link to an integrated intermodal transport system, which in turn opens up the local economy.”

Prior to the project’s inception, the only way in and out of Soluyi Community, Gbagada, was via the always busy Ayodele Okeowo Road, which ran alongside Deeper Christian Life Bible Church. “The attendant traffic gridlock resulting from high vehicular volume during peak periods necessitated the provision of an alternate route to alleviate the discomfort experienced by residents in the area while also addressing environmental challenges, particularly flooding,” she said.



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