The Lagos state government says it has issued a N14.81 billion series three green bond and a N230 billion series four conventional bond to fund infrastructural projects.
In a statement by the office of the special adviser to the government on media and publicity, the state government said the bond was issued in a ceremony on Thursday.
The Lagos government said both bonds were issued under the N1 trillion debt and hybrid instruments issuance programme.
‘The Green Bond, which was set out to raise N14.815 billion at coupon rate of 16.00 per cent, received bidding totaling N29.29 billion at the conclusion of the book, with N27.79 billion falling within the State’s price guidance’, the statement reads.
‘In the Conventional Bond, Lagos targeted to raise N200 billion at the capital market, but the bond was oversubscribed to tune of N310.06 billion, with N304 billion within the range of advised coupon.
‘Lagos, however, opted for the green shoe option, raising N230 billion at 16.25 per cent coupon from the oversubscribed bond’.
Speaking on the achievement, Babajide Sanwo-Olu, governor of Lagos, said the development reflects investors’ strong confidence in the state’s future and underscores Lagos’ shared commitment to sustainable development.
He said the transaction represents the largest bond issuance undertaken by the Lagos government, appreciating the issuing parties and advisors that worked with the state to achieve the target.
The governor commended investors who subscribed to the deal, stressing that the green bond highlighted his administration’s vision on environmental responsibility.
‘This is not just a financial transaction; it is a bold statement of confidence in Lagos’ future and a testament to our shared commitment to sustainable development’, the governor said.
‘This trust is not taken for granted. Lagos State Government will continue to pursue solid economic fundamentals, transparent fiscal practices, infrastructure development, and environmental protection and preservation’.
Sanwo-Olu said the proceeds from the issuances would be channelled into critical infrastructure in transportation, housing, the environment, healthcare, education, and urban renewal.
In addition, the funds would support other sustainable projects designed to meet the state’s future needs, the politician said.
He explained that the green bond further reinforces Lagos’ commitment to sustainable development, environmental protection, and climate resilience.
Sanwo-Olu said it also aligns with his administration’s long-term strategy to build a state that is not only prosperous but environmentally secure for future generations.
The governor said Lagos has continued to enjoy strong confidence from capital market investors since its first bond issuance, noting that the state was the first sub-national to issue a Sukuk bond under its series II issuance programme.
The governor thanked President Bola Tinubu, Wale Edun, the coordinating minister of economy, the state team, and investors’ group, for making the target attainable.
