The Lagos State Commissioner for Finance, Yomi Oluyomi, says the state has set a new milestone with the completion of the bookbuild for its landmark bond issuance, which received an overwhelming response from investors.
In a statement on Monday, Oluyomi revealed that the state issued a N200bn Conventional Bond and a N14.8bn Green Bond, both of which were significantly oversubscribed.
“The Conventional Bond, which is the largest ever issued by a non-corporate sub-national in Nigeria’s history, attracted subscriptions totalling N308bn, representing a 54 per cent oversubscription above the initial offer. Lagos State is the first sub-national government to issue an impact climate bond. The Green bond attracted N28.7bn – 94 per cent more than the target,” Oluyomi said.
Lagos State Governor Babajide Sanwo-Olu, quoted in the statement, linked the strong market interest to renewed investor confidence. “This is a reflection of the global confidence in Nigeria’s economy, fostered by the bold reforms initiated by President Bola Tinubu as reflected in the recent oversubscription of the Federal Government’s Eurobond.
“In Lagos, ours is a testament to our resilience and the unwavering support of our private sector partners who believe in our vision of building Africa’s model megacity that is safe, secure, and functional,” Sanwo-Olu said.
He added that the state would continue to prioritise prudent financial management, accountability, and fiscal transparency to sustain a business-friendly environment. “Our dream is to make Lagos a global financial hub; we will keep our eyes on the ball,” he said.
According to the statement, proceeds from the bond issuance will be channelled into strategic projects across the state, aligned with the THEMES+ Agenda of Governor Sanwo-Olu.
“These projects will focus on vital areas such as transportation, healthcare, education, and environmental sustainability, all aimed at significantly improving the livelihood and well-being of all Lagosians and securing a more prosperous and resilient future for the state,” it stated.
The statement described the “conventional bond” as a fixed-rate, long-term debt instrument through which the Lagos State Government raises capital from the domestic capital market. The funds are intended for infrastructure and social development initiatives under the state’s Debt Issuance Programme, which allows Lagos to issue bonds, notes, and other securities under a shelf registration.
