At 13 per cent, the debt instrument is
under the N500 billion fourth debt series expected to run between 2021 and
2031.
At the signing ceremony which took place at
the State House, Alausa in the presence of the 24 issuing houses and eight
trustees among others, the governor said the bond was to finance key
infrastructure projects, on roads and healthcare.
These he listed to include the
Lagos-Badagry Expressway, Lekki Regional Road, Rehabilitation of Ijeododo road
and Rehabilitation of the alternative route to Admiralty Circle Toll Plaza.
“In the last eight months, and with the
unwavering support of our transaction advisers, we have been able to achieve
this laudable feat — which to some observers had seemed impossible.
“We set out to raise up to N125 billion and
closed the Book Build with bids totalling N137.3 billion. This strong response
from the investing community – to our administration’s debut bond issuance – is
humbling and is indeed a testament to continued investor confidence in the
state’s ability to deliver on its infrastructural and socio-economic
developmental objectives; and to meet repayment obligations.
“Notwithstanding the significantly
over-subscribed book, and active participation from a wide array of
institutional investors – including banks, pension fund administrators, asset
managers and corporates, Lagos State has maintained its discipline on size and
pricing. Mindful of the prevailing yield environment, the Series IV Issuance was
maintained at N137.3 Billion and cleared at a coupon of 13 per cent per annum.
Only bids within the clearing bid were accepted,” he explained.
The issuing houses were led by Managing
Director Chapel Hill, Denam, Kemi Awodehin.
Sanwo-Olu added: “It gives me great
pleasure to preside over this ceremony and to welcome you all, as Lagos State
once again celebrates another milestone in the Nigerian domestic debt capital
markets, with the issuance of the largest bond ever by a sub-national in
Nigeria.”
This was also be the third time a
sub-national would be issuing a long-date Bond (10 years), following the debut
issuance of a 10-year instrument in 2017.
“We are gathered here for the signing of
the necessary documents required by the Securities & Exchange Commission
(SEC) to finalise the issuance of Lagos State’s N137.3 billion 13 per cent
2021/2031 Fixed Rate Bond Series IV Bond Issuance, under the N500 billion
fourth debt issuance programme.
“The conclusion of this process will bring
to N377.715 billion the total value of bond issued from the Lagos State N500
billion debt issuance programme.
“From the moment I formally received my
mandate in May 2019, the imperative to drive our THEMES agenda aggressively has
been clear. In order to adequately kick-start the funding of our projects, we
formally commenced this issuance process in April 2021.
“In line with the state’s vision to build a
Greater Lagos, the proceeds of the Bond will be used to finance key
infrastructure projects, primarily in roads and healthcare. These include the
Lekki Regional Road, Rehabilitation of Ijeododo road and Rehabilitation of the
alternative route to Admiralty Circle Toll Plaza.
“These projects will contribute to a better
quality of living for our people, while also creating a more enabling
environment for commercial and economic activity. There is no doubt — and we
have seen this from previous interventions — that the multiplier social and
economic effects will more than justify the cost of the investment.
“We applaud the Federal Ministry of
Finance, PenCom and the Debt Management Office Nigeria, for their support and
collaboration. Our appreciation also goes to the Securities & Exchange
Commission.
“We equally thank the investing community
for their sustained support of Lagos State and our efforts to improve the
social and economic welfare of all residents in Lagos. We do not take for
granted your enthusiastic response to our Bond offer.
“We will continue to uphold our commitment
to remain the most responsible issuer in the Nigerian capital market.”
In another development, Sanwo-Olu yesterday
inaugurated nine network of roads and a bridge expected to cater for 300,000
people in the Kosofe area of the state.
With a total length of 2.840km, the roads
are to improve connectivity in the Kosofe area of Lagos mainland.
The governor said: “Today bears testimony
to the fulfilment of our administration’s promise to ensure continuity of
governance by completing projects that were inherited from the previous
administration, especially those that are directly beneficial to the well-being
of our people.
“In addition to initiating new projects, we
have expended huge resources on the completion of several projects which cut
across different sectors in all parts of the state.
“Soluyi Community is a strategic settlement
with a fast growing population in need of infrastructural renewal. This
prompted our decision to prioritize the completion of this network of roads,
with a total length of 2.840km, including a bridge, which will serve a
population of more than 300,000 people, within the Soluyi-Araromi-Ifako-Gbagada
Communities.
“These projects exist as a testament to our
administration’s resolve to continue to provide the necessary infrastructure
for sustainable development, in every part of the state.
“With the completion of these projects, our
administration has once again demonstrated the topmost priority that we accord
to the welfare and well-being of the people of Lagos, in line with our Greater
Lagos Vision, and the Traffic Management and Transportation Pillar of our
THEMES Governing Agenda.
“The ever-increasing number of people
living in Lagos, and the attendant rise in vehicular traffic volumes and axle
loads are partly responsible for the issues we face regarding road
infrastructure in the State. Our administration will continue to respond to
this challenge by stepping up our efforts in the area of construction and
rehabilitation of roads and highways, and the expansion of our transportation
network, with renewed focus on our multimodal transport strategy.
“We can and will take some pressure off our
roads by utilizing our waterways and by rail technology. This is why we are
pushing ahead with determination on the Lagos Light Rail project, as well as
the construction of jetties and deployment of boats and ferries across the
State.
“I want to implore the Community
Development Association of this area to immediately assume ownership of and
responsibility for the judicious use of these projects/roads. You must care for
them with devotion and dedication, and keep them clean, and the drainage free
of waste, at all times.”
The Governor highlighted some of the
benefits of the roads to include as an alternative route to the Third Mainland
Bridge (TMB) and Apapa-Oworonsoki Expressway via the Third Axial underpass; to
address the perennial environmental and infrastructural challenges among
others.
Welcoming the audience, the Special Adviser
to the Governor on Works and Infrastructure, Engr Aramide Adeyoye said, “For
us, the driving force behind this is to ensure connectivity and reduce the
burden and pressure on major arterial roads that link to an integrated
intermodal transport system which in turn opens up the local economy.”
According to her, prior to the project
inception, the only access in and out of Soluyi Community, Gbagada, was via the
ever- busy Ayodele Okeowo Road abutting Deeper Christian Life Bible Church.
“The attendant traffic gridlock arising
from high vehicular volume during peak periods necessitated the provision of an
alternative route to ameliorate the discomfort, residents around the area
experience while also addressing environmental challenges, particularly
flooding due to inadequate drainage system.”