Lagos State’s N200bn Bond Oversubscribed by 55%, Signaling Strong Investor Confidence
Lagos State’s N200 billion bond has been oversubscribed by an impressive 55%, reflecting strong confidence from domestic investors. The record-breaking conventional bond, the largest ever issued by a non-corporate sub-national entity in Nigeria, attracted total commitments of N308 billion. In parallel, the state’s N14.8 billion Green Bond also drew significant interest, receiving N28.7 billion in submissions—a 94% oversubscription.
The oversubscription highlights Lagos State’s dominant position in Nigeria’s sub-national debt market. By closing the book-build with such high demand, the state reaffirmed its ability to attract investors despite a challenging economic climate. Analysts see the outcome as a signal of growing appetite for both conventional and impact-focused climate bonds among institutional investors.
Governor Babajide Sanwo-Olu described the results as a reflection of renewed confidence in Nigeria’s economic direction. “This demonstrates the global confidence in Nigeria’s economy, fostered by bold reforms initiated by President Bola Ahmed Tinubu,” he said. The governor emphasized that Lagos’ strong market performance underscores the state’s resilience and the unwavering support of private-sector partners.
Proceeds from the bond issuance are expected to fund priority projects under Lagos State’s THEMES+ Agenda, including investments in transportation, healthcare, education, and environmental sustainability. The government anticipates that these projects will improve living standards for Lagos’ more than 20 million residents while advancing the state’s ambition of becoming a global financial hub.
Financial analysts believe the successful issuance could set new benchmarks for sub-national bonds in Nigeria. With growing interest in green and climate-linked instruments, Lagos’ performance may inspire other states to explore innovative financing solutions while strengthening investor confidence in sustainable development initiatives.
source: Business day