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Sanwo-Olu signs N115bn tenure bond

Lagos State governor Babajide Sanwo-Olu

The Lagos State Government has signed a N115 billion, 10-year tenure bond under the new N1 trillion debt and hybrid issuance programme and a N19.815 billion, seven-year 2030 Ijarah Sukuk.

During the ceremony for the first sets of allotment of the fully subscribed bonds at Lagos House, Alausa, Governor Babajide Sanwo-Olu said the proceeds of the financial instruments would be deployed to fund infrastructure in various sectors.

These include education, health, Energy and Mineral resources, Agriculture, roads and drainage systems.

Lagos will continue to be very financially responsible to ensure that funds that are given to us for specific purposes are used for those purposes. The proceeds from these issuances will not only drive infrastructure development, but also stimulate economic growth, foster job creation,and enhance the quality of life for all Lagosians,” he said.

Our objective is to create an environment that attracts local and foreign investors, spurring economic activities that will benefit the people” the Governor added.

Commissioner for Finance, Rabiu Olowo explained that the interest rates on the 10-year tenure Bond is 15.25%, while that of the seven-year tenure Sukuk is 14.675%.

In the last four years, the Sanwo-Olu administration has issued four instruments in the Nigerian Debt Capital Market, making Lagos the second State to explore Sharia-compliant financing model.

Mr Olowo said the state has retained the trust of the investment community because it has not taken their support for granted.

“These issuances demonstrate Lagos State’s status as a “Category A Issuer”, and is resounding proof of the trust and faith that investors have in the State’s ability to responsibly deploy proceeds to deliver on the government’s THEMES Agenda,” he affirmed.

“The transaction,” Mr Olowo continued, “reflects the resilience and depth of the domestic debt capital market. Lagos state has been able to build a greater Lagos for generations to come.

We do not take the support of the market for granted and we are most grateful for the support we received at each issuance.”

The ceremony was attended by a member of the State House of Assembly overseeing finance as well as the Commissioners for Economic Planning and Budget and that of Justice. Also present were representatives of the two issuing houses and bankers.

Reporting by Omolara Omosanya; Editing by Julian Osamoto, Adeniyi Baakare and Tony Okerafor