Lagos State has successfully concluded the bookbuild for its landmark ₦200 billion bond issuance, achieving a 55% oversubscription. According to a statement by the Commissioner for Finance, Yomi Oluyomi, the offer received an overwhelmingly positive response from the investment community. The conventional bond, which is the largest ever issued by a non-corporate sub-national in Nigeria’s history, attracted subscriptions totaling ₦310 billion.
The ₦14.8 billion Green Bond was also significantly oversubscribed, with ₦29.29 billion received, representing a 97.7% increase over the target. This development makes Lagos State the first sub-national government to issue an impact climate bond. Governor Babajide Sanwo-Olu attributed the success to the global confidence in Nigeria’s economy, citing the recent oversubscription of the Federal Government’s Eurobond as evidence of this trend.
The proceeds from the bonds will be used to fund critical projects across the state, aligned with the Governor’s THEMES+ Agenda. These projects will focus on vital areas such as transportation, healthcare, education, and environmental sustainability, aiming to improve the livelihood and well-being of all Lagosians and secure a more prosperous future for the state.
The significant oversubscription of the bond issuance demonstrates the investment community’s confidence in Lagos State’s economy and its vision for the future. The state’s commitment to prudent financial management, accountability, and fiscal transparency has created a conducive environment for businesses to grow. As Governor Sanwo-Olu noted, the goal is to make Lagos a global financial hub, and this development is a step towards achieving that objective.
The successful bond issuance is expected to have a positive impact on the state’s infrastructure and services, ultimately benefiting its citizens. With the funds raised, Lagos State can now proceed with its planned projects, which will contribute to the state’s economic growth and development. This achievement reinforces the state’s position as a key player in Nigeria’s economy and demonstrates its potential for attracting investments and driving growth.