Lagos State has officially launched a dual bond offering worth N214.8 billion, marking its largest capital market move to date. The issuance includes a N200 billion Series IV Bond and a N14.815 billion Series III Green Bond under the state’s N1 trillion Debt and Hybrid Instruments Issuance Programme. Governor Babajide Sanwo-Olu said the bonds are aimed at financing major infrastructure projects and advancing climate-resilient initiatives across the state.
The book-building for both bonds opened on November 6, 2025, and will close on November 13, 2025, according to Afrinvest Securities Limited, the joint issuing house. Both bonds are fixed-rate, semi-annual coupon instruments, with repayments scheduled on an amortised basis following a 24-month moratorium. The Series IV Bond will fund essential physical and social infrastructure, while the Series III Green Bond will support environmentally sustainable projects.
Lagos State’s maiden Green Bond targets initiatives such as flood mitigation, renewable energy, sustainable waste and water management, and urban greening projects outlined in the Lagos State Climate Action Plan (2021–2025). The issuance complies with the International Capital Market Association’s Green Bond Principles, is certified by the Climate Bonds Initiative, and has received a Second-Party Opinion from Agusto & Co., ensuring global sustainability standards are met.
With a thriving economy contributing roughly 20 percent of Nigeria’s GDP, Lagos State has shown strong financial performance. Internally generated revenue surged by 105 percent to around N2 trillion by the end of 2024, reflecting efficient tax administration and minimal dependence on federal allocations. Both bond tranches are backed by an Irrevocable Standing Payment Order (ISPO) and a Consolidated Debt Service Account funded from the state’s IGR, guaranteeing investor protection and timely repayment.
The Series IV Bond carries a 10-year tenor with interest rates between 16.15 and 16.25 percent, while the five-year Green Bond is priced at 15.90 to 16.00 percent. Each bond requires a minimum subscription of N10 million, with additional multiples of N1 million. Upon completion, the instruments will be listed on the Nigerian Exchange Limited (NGX) and/or FMDQ Securities Exchange, reflecting Lagos State’s commitment to sustainable development and infrastructure growth.
source: leadership