Bonds: Sanwo-Olu borrows N135 billion to upgrade 33 schools, other infrastructure

Governor Babajide Sanwo-Olu has signed N134.815 billion bonds which he said would deliver key infrastructure projects in Lagos.

At the signing ceremony on Tuesday, Mr Sanwo-Olu said one of the projects would be overhauling 33 public schools in the Tolu Complex area of Ajegunle (Olodi Apapa).

“The state issued a 10-year tenure bond value at N115 billion at 15.25 per cent in its fourth issuance under the Debt and Hybrid Issuance Programme duly approved by the State House of Assembly,” stated the governor.

Mr Sanwo-Olu explained that the second instrument “is a seven-year tenure bond valued at N19.815 billion at 14.675 per cent Fixed Return Forward-Ijarah Lease Sukuk, billed to mature by 2030, which marked the first shariah compliant instrument to be issued by Lagos.”

He said the development was another significant milestone his administration recorded in delivering the required infrastructure to catalyse economic growth across the state.

The governor said the two bond issuances would provide the impetus for his government to drive further its development agenda in critical sectors of the state, stressing that proceeds from the bond and Sukuk would be used for projects earlier inspected by the Securities and Exchange Commission.

”Some of the projects include a massive overhaul of 33 public schools in the Tolu area of Ajegunle and ongoing road infrastructure projects on the Lekki-Epe corridor,” explained the Lagos governor. “A significant part of the funds will be used for drainage works, sea and lagoon embankment to protect the environment from climate issues.”

He also mentioned that part of the proceeds would be for the Infectious Disease Research Centre at Infectious Disease Hospital in Yaba.

“We are building agricultural capability to feed our people. “Part of the proceeds is going to all the activation we have been doing around constructing major food markets,” he said.

Finance commissioner Rabiu Olowo said the issuances demonstrated Lagos’ status as a ‘Category A Issuer’ and proved investors’ trust in the state’s ability to deploy proceeds to deliver on government projects judiciously.

A lead issuing house, Chapel Hill Denham, said Lagos raised the N135 billion bond within 14 days of issuance, saying the oversubscription indicated investors’ confidence in the state.

(NAN)