The Lagos State Government has officially listed two major bond instruments worth N244.815bn on the Nigerian Exchange Limited, reinforcing its aggressive push to fund infrastructure and sustainable development projects. The dual listing, disclosed in the exchange’s weekly market report on Friday, forms part of the state’s ambitious N1tn Debt and Hybrid Instruments Issuance Programme.
Leading the offering is a N14.82bn Series 3 Green Bond, a five-year instrument maturing in November 2030 with a fixed interest rate of 16 per cent per annum. Designed to finance environmentally friendly and climate-resilient projects, the bond signals Lagos’ growing commitment to sustainable finance. For residents, this translates into potential investments in cleaner transportation, improved drainage systems, renewable energy projects, and other eco-conscious infrastructure.
Investors in the green bond will receive semi-annual coupon payments every May and November, while the principal repayment will begin after a 24-month moratorium period, structured on an amortised basis. This repayment design provides the state with initial breathing room to deploy funds into projects before beginning to service the principal, while still offering steady income to investors.
Alongside the green issuance, Lagos also listed a much larger N230bn Series 4 Fixed Rate Bond. This ten-year bond carries a slightly higher coupon rate of 16.25 per cent per annum and will mature on November 20, 2035. The instrument includes a call option, allowing the state to redeem the bond at par after five years, subject to regulatory approvals and prior notice to bondholders — a feature that adds flexibility to the state’s long-term debt strategy.
The bond issuances were facilitated by a consortium of financial institutions, with Chapel Hill Denham Advisory Limited acting as Lead Issuing House and Book Runner, alongside Stanbic IBTC Capital, United Capital Plc, and Cardinal Stone Partners. Market analysts say the successful double-listing highlights the depth of Nigeria’s capital market and underscores Lagos’ position as a leader in innovative public-sector financing in West Africa — a move that ultimately aims to improve infrastructure, create jobs, and strengthen economic resilience for Africa’s largest city.
source: punch