Lagos State has set another record in accessing capital market funds to finance the delivery of key infrastructure projects as the government, alongside issuing parties and trustees, have signed transaction instruments for the first sets of allotment in the N1 trillion Debt and Hybrid Issuance Programme.
The state issued a 10-year tenure bond value at N115 billion at 15.25 per cent in its fourth issuance under the Debt and Hybrid Issuance Programme duly approved by the state House of Assembly.
The second instrument is a seven-year tenure bond valued at N19.815 billion at 14.675 per cent Fixed Return Forward-Ijarah Lease Sukuk billed to mature by 2030, which marked the first shariah compliant instrument to be issued by Lagos.
Attorney General and Commissioner for Justice, Mr Moyosore Onigbanjo, formally read out the resolutions of the State Executive Council adopting the issuance of the two bonds before the signing of the instruments by the parties.
Governor Babajide Sanwo-Olu described the development as “another significant milestone” recorded by his administration in delivering required infrastructure that would catalyse economic growth across the state.
He said proceeds from the Bond and Sukuk will enable various Ministries, Departments and Agencies execute respective projects that have been pre-inspected by the Securities and Exchange Commission and issuing houses.