Infrastructural Development: Sanwo-Olu Signs N100b Bond

Lagos State Government has opened a new chapter in its stride towards attaining self-sustenance in finance and governance.

Governor Babajide Sanwo-Olu on Wednesday, signed documents for the issuance of N100.33 billion bond, which the State raised from capital market to fund infrastructure and pressing capital projects.

At a signing ceremony held at the Banquet Hall at the State House in Alausa, Governor Sanwo-Olu, investors and issuing parties put the final ink on the over-subscribed Series Three Bond Issuance of N100 billion which was issued and raised by the State under its N500 billion Third Bond Programme approved four years ago.

The Governor, who was visibly excited by the financial intervention, declared the moment as “historic and new journey” for the State in its drive to provide requisite infrastructure to catalyse its economy.

Sanwo-Olu recalled that the effort to raise the bond started some three months ago with a simple discussion with professional partners led by Chapel Hill Denham.

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Within a period of three months, Sanwo-Olu said the partners helped Lagos to restructure its balance sheet and reduce the State’s interest expense by N17 billion, which gave Lagos the opportunity to raise the bond from the capital market.

Sanwo-Olu promised not to betray the confidence of investors that subscribed to the bond, pledging that the funds would be disbursed strictly to finance infrastructural projects required to boost the State’s economy.

Commissioner for Finance, Dr. Rabiu Olowo, said the State accelerated the bond programme in response to the need to close “huge infrastructural gap” in the face of limited financial resources available to the State.

He said the State Government took the advantage of favourbale investment climate in the capital market to issue the “Series Three” of its bond programme to raise the money.

Managing Director, Chapel Hill Denham, Mr. Bolaji Balogun, described the bond as a “jumbo” for the State, stressing that the support given to Lagos Government by the capital market was unprecedented.

Balogun noted that Lagos issued a bond of N100 billion, adding that the Minister for Finance granted the approval for the process while in transit.

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