SANWO-OLU SIGNS N137.328 BILLION LARGEST BOND ISSUANCE BY SUB-NATIONAL
Governor Babajide Sanwo-Olu has signed a historic N137.328 Billion Bond Issuance, which is the largest by any sub-national or State in Nigeria.
Speaking during the signing ceremony held at the Banquet Hall of Lagos House, Ikeja, the Governor, who was visibly elated, explained that it became necessary to issue the bond in order to bridge the infrastructure deficit in the State and make life more comfortable for Lagosians.
“Today marks 930 days out of 1,460 days of this administration and the State government will continue to count the days and set the bar for new heights and new levels”, Sanwo-Olu stated.
He said the government had, over some years ago, issued N100 Billion Bond which was then the largest issuance by a State, saying “We have shown that in the capital market, we can stay in the kitchen and withstand the heat”.
Informing that this was the third time Lagos will issue such a large bond and an indication of investors’ confidence in the State, Sanwo-Olu said his administration took advantage of the favourable market environment and the advice of financial experts as well as the support from the financial market in issuing N125billion but got N137.328 billion in return due to oversubscription.
“This means there is something we’re doing right. It is very humbling and a testament to the confidence the investors have in us as a State and a government”, he enthused.
The Governor said the proceeds of the bond will be used to execute far-reaching projects in line with the vision to build a Greater Lagos and make life better for the citizens, listing some of the projects for which the bonds will be utilised as the 10-kilometre regional roads, construction of Ijedodo Road, Oba Sekumade Road, Ikorodu, Demurin Street in Kosofe and Lagos-Badagry Road amongst others.
Earlier in his welcome address, the Commissioner for Finance, Dr. Rabiu Olowo, noted that the bond is the biggest Bond Issuance by any sub-national entity.
He said the documents to be signed at the ceremony as required by the Securities and Exchange Commission is the high point of the bond issuance, adding that the State Government took advantage of the favourable climate in the Capital Market to initiate a bridge to bond process in order to re-access the Capital Market to drive the T.H.E.M.E.S. Agenda.
Olowo averred that the State was able to achieve and exceed the N125 billion subscription, ending up with N137.328 billion target due to Mr. Governor’s quick intervention when there were challenges, adding that the feat was a testament of the prevailing investment trust in the credibility of Governor Babajide Sanwo-Olu led administration in Lagos State.
He also acknowledged the role of the Capital Market and appreciated everyone for their contribution, including the Issuing Houses, the Trustees, Solicitors, the Rating Agencies, the Stockbrokers, the Receiving Banks and support from other Agencies, assuring that the proceeds of the bond will be judiciously utilised.
In her remarks, the representative of Chapel Hill Denham Advisory Services, the Lead Issuing House, Mrs. Kemi Awodein, congratulated Lagos State Government in achieving another milestone by raising the largest bond ever by a State.
She also thanked Governor Babajide Sanwo-Olu for his trust in Chapel Hill Denham Advisory Services, saying “we stand solidly behind you and hope to do more in future”.
The Series IV 10-Year 13.0% Bond due in 2031 under the State’s’s third N500 Billion Debt Issuance Programme is the largest Bond Issuance in the debt capital markets by a non-sovereign issuer. It also marks the third 10-Year bond instrument by a sub-national issuer with the first and second being Lagos State, further extending the maturity profile of the State’s debt portfolio to match its investment in infrastructure, which are long term assets.
Lagos State government presently has a credit rating of A+ by Global Ratings Co. and Agusto & Co.
RA/TMS/OS
CAPTIONS:
PIX 1: (L-R) Lagos State Governor, Mr. Babajide Sanwo-Olu; Commissioner for Finance, Dr. Rabiu Olowo and Lagos State Head of Service, Mr. Hakeem Muri-Okunola at the signing ceremony of the Series IV N137.328 billion bond issuance at the Banquet Hall of Lagos State, Ikeja on Monday.
PIX 2: (L-R) Chief of Staff to the Governor, Mr. Tayo Ayinde; Chairman, Lagos State House of Assembly Committee on Finance, Mr. Rotimi Olowo; Deputy Governor of Lagos State, Dr. Obafemi Hamzat; Governor Babajide Sanwo-Olu of Lagos State; Managing Director, Chapel Hill Denham Advisory Services, Mrs Kemi Awodein; Commissioner for Finance, Dr. Rabiu Olowo and Lagos State Head of Service, Mr. Hakeem Muri-Okunola at the signing ceremony of the Series IV N137.328 Billion Bond Issuance at the Banquet Hall of Lagos House, Ikeja
PIX 3: Governor Babajide Sanwo-Olu and his Deputy, Dr. Obafemi Hamzat and Commissioner for Finance, Dr. Rabiu Olowo, among representatives of Issuing Houses at the signing ceremony of the Series IV N137.328 billion bond issuance programme at the Lagos House, Ikeja.
