Lagos Raises N244.82bn in Oversubscribed Green and Conventional Bonds to Fund Infrastructure

Lagos State has successfully raised N244.82 billion through a combination of green and conventional bonds, underscoring strong investor confidence in the state’s growth plans. The funds will be directed toward key infrastructure projects aimed at improving transportation, energy, and environmental sustainability across the city.

Speaking at the Ministry of Finance/DMO bond signing ceremony in Lagos, Governor Babajide Sanwo-Olu thanked investors for their trust, emphasizing that this issuance is part of Lagos’ broader N1 trillion debt and hybrid instruments programme. The governor highlighted the state’s track record of pioneering bond issuances, noting that each new issuance has consistently surpassed previous records.

The landmark green bond, Nigeria’s first at the subnational level, raised N14.815 billion from total bids of N29.29 billion. Governor Sanwo-Olu explained that the bond aligns with Lagos’ environmental goals under the THEMES+ Agenda, supporting projects that will foster a “prosperous, resilient, and environmentally secure future” for the state.

Finance Commissioner Abayomi Oluyomi revealed that the bond selection process was guided by the United Nations Sustainable Development Goals, ensuring measurable environmental impact. Meanwhile, the Series 4 conventional bond, initially targeting N200 billion, closed at N230 billion due to overwhelming investor demand, signaling robust market confidence in Lagos’ fiscal management.

Bolaji Balogun, CEO of Chapel Hill Denham and lead issuing house, praised Lagos for its fiscal discipline, transparency, and innovation. “While many states struggle to access bond markets, Lagos continues to set the benchmark,” he said. The issuance of the green bond, he added, marks a historic milestone for subnational finance in Africa.

source: Vanguard