Lagos State Governor Babajide Sanwo-Olu on Wednesday signed the issuance of a N100billion bond.
It is the largest bond issuance in the domestic capital markets by a sub-national government.
The signing took place at the Lagos House, Alausa, Ikeja, with the partners and exco members in attendance.
It is Lagos State’s third bond programme under its N500b bond issuance programme, having previously issued bonds under N107.75billion and N167.5billion programes.
The governor said the bond issuance recorded an oversubscription at 196.5 per cent, adding: “This strong response to the new administration’s debut bond issuance is a testament to continued investor confidence in Lagos state and the state’s strong credit profile.
“Lagos State maintained its discipline on size and pricing, despite over-subscribed books and the active participation from a wide array of institutional investors, including banks, pension fund administrators, asset managers and corporates; the series 3 issuance was maintained at N100billion and clearing price at 12.25 per cell.”
Sanwo-Olu said his administration will ensure that Lagosians feel the impact of the issuance in the provision of key infrastructure across the state to give them the real essence of governance.
He said the issuance is a demonstration of the can-do spirit of Lagos, “because we made a commitment of a greater Lagos when this administration came in and today after 249 days we are excited that we are writing the financial history of Lagos in a good chapter.
“We really are appreciative of the investing community, whose sustained support of Lagos State continues to spur our resolve to deliver on a Greater Lagos. This bond positions Lagos State as a very active participant in the development of our domestic debt capital markets. We remain resolute to upholding our commitment to being the most responsible issuer in the Nigerian capital markets.”
The Chairman of Chapel Hill Denham, an issuing house and one of the partners, Bolaji Balogun, had hailed Governor Sanwo-Olu, saying the lead bond issuance set an example of building continuum in government, because the process was started by the administration of Asiwaju Bola Tinubu.
He said Lagos must continue to accelerate development of infrastructure, as it is the only way to develop and grow the economy, adding: “The process must be sustained.”
Finance Commissioner Mr. Rabiu Olowo said that proceeds from the issuance would be judiciously used in line with the ‘THEMES’ agenda of the government.
He said: “We appreciate support of investors to the significant growth witnessed by Lagos State, given that the money raised through our bonds are being committed to the development of physical and social infrastructure, for the benefit of us all.
“Our partners, especially the issuing houses led by Chapel Hill Denham, have worked tirelessly with us to deliver another successful outcome on this landmark transaction. We also acknowledge the support received in the issuance process from the Federal Ministry of Finance, Securities and Exchange Commission and Debt Management Office Nigeria.”
