Sanwo-Olu signs N1trn bond to develop state’s infrastructure

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Lagos, May 24, 2023 – The Lagos State Government has signed a bond of N1 trillion from the capital market to finance development of key infrastructure.

The state government said that the funds would be accessed in batches

The state Governor, Babajide Sanwo-Olu, signed the  bond of N1 trillion, at a ceremony where the state government, issuing parties and trustees signed transaction instruments for first sets of allotment in the N1trillion 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 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.

The Attorney-General and Commissioner for Justice, Mr. Moyosore Onigbanjo, SAN, 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.

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.

The two bond issuances, he said, would provide the impetus for his government to further drive its development agenda in critical sectors of the state.

“As we renew our mandate in the coming days, these two issuances will provide the impetus for my administration to further drive our THEMES agenda.

“Proceeds from the Bond and Sukuk will enable various Ministries, Departments and Agencies (MDAs), including the Ministry of Energy and Mineral Resources, Ministry of Agriculture, the Office of Drainage and Water Resources, Ministry of Works and Infrastructure, Ministry of Education, Ministry of Health, and Ministry of Waterfront and Infrastructure, to execute respective projects that have been pre-inspected by the Securities and Exchange Commission and issuing houses,” the governor said. (Blueprint)

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