…We’re building a state environmentally secure for future generations- Sanwo-Olu
IBRAHIM QUADRI
Lagos State Governor, Mr Babajide Sanwo-Olu, on Thursday said that his administration is building a state that is not only prosperous but also environmentally secure for future generations.
Governor Sanwo-Olu gave the assurance during the combined signing ceremony of N14.815 billion 16.00% Series III Green Bond and N230 billion 16.25% Series IV Bond (under the N1 Trillion Debt and Hybrid Instruments Issuance Programme) at Victoria Island.
With the signing, the State has completed a landmark dual issuance with strong investors confidence.
The issuance reflects Nigeria’s economic reforms and growth opportunities.
The Governor added his administration will be leaving behind a sustainable infrastructural masterpiece for today’s Lagos and generations coming behind.
The proceeds from the bonds are to be expended on expansion of the Blue and Red Rail Lines to ease urban mobility; construction of the Lekki-Epe Airport Road to boost connectivity; development of affordable housing schemes for growing population; upgrading healthcare facilities, including a 280-bed hospital; installation of alternative solar power across schools in Lagos and establishing agro-produce hubs to strengthen food security.
Sanwo-Olu said, “I stand here this afternoon with great joy and with profound appreciation to welcome all of us in today’s historic signing ceremony.
Today, once again demonstrates the power of possibility when there’s a push.This is not just a financial transaction, the global statement of confidence in Lagos feature and the testament to our shared commitment to sustainable development.
“As you gathered here to execute a transaction documentation for the issuance of green and conventional bonds, we also want to celebrate two major achievements, the successful issuance of series three green bond and series four conventional bond, which are one trillion debt and hybrid instrument issuance programme.
“Let me say this, when we came into government over six years ago, the first bond that we issued in 2020 was the first that was the highest in Africa and that was just about 100 billion and every successive bid, that was issued had to beat our previous records.
And I think the credit goes to all of you today, another record is being broken.
“Having issued the first bond series under this programme, we’ve recorded another feat. Lagos state now issued the first ever Green bond by any subnational in the country.
We are set to raise a total of N14.815 billion and at the completion of the bond, we received a bid totaling 29.29 billion. Of which 27.79 billion fell within our price guidance. And so the green bond highlights our vision on environmental responsibility which is part of the second Pillar under our THEMES plus agenda for development of 14.815 billion green bond.
We believe it is a clear testament of our commitment to a sustainable developmental projects and preservation on climate resilience.
“We are aligning with our long term strategy to build a Lagos that is not only prosperous but also environmentally secure for future generations.
“Equally momentous is our series four conventional bond. The initial target was for us to raise 200 billion but I didn’t take cognizance of the book building.
Total bid of 310.06 billion were received, of which 304 billion within the range of our advised coupon.
Given this extraordinary support and confidence of the investors, we have exercised what we call the green silk option successfully. N230 billion now the largest bond issuance ever undertaken by Lagos state and by any sub-national and sub -Saharan Africa and it continues to demonstrate your trust and belief in Lagos.”
The Governor added, “This trust we must not take it for granted. Lagos state government will continue to pursue solid economic fundamental, transparent fiscal practice infrastructural development and environmental protection and preservation.
“Lagos state received a total of 339 billion in bids for series three bond and series four bond issuance. Let me, therefore, on your behalf and good people of Lagos acknowledge the support we received from the Federal Government, Mr. President Bola Ahmed Tinubu leading the path always.”
Sanwo-Olu stated that the proceeds of the bonds will be used for critical infrastructural areas of transportation, housing, Environmental challenges in healthcare, in education and in urban renewable.
“We will be leaving behind us a sustainable infrastructural masterpiece for today’s Lagos and generations coming behind us.
“As always, we remain committed to accountability, safety to property and ensuring that every resource that has been entrusted to us will translate into tangible and meaningful improvement into the lives of our citizens.
This is a solemn pledge as your governor that will also make it publicly here and today to all of our citizens again.
Together, we believe we are building a greater Lagos, a Lagos of our dream.”
Representative of British High Commissioner, Private Sector Development Adviser at Department for International Development, Temilola Akinrinade said,
“The strong investor response shows clear confidence in Lagos State strategy, planning and financial discipline.
It also reflects the strength of Nigeria’s recent economic reforms led by His Excellency, President Bola Tinubu which are now opening up new opportunities for growth and investment.
“So in today’s made in Green bond signing is a result of the long term partnership between Lagos State, the UK Government and the UK funded financial sector deepening Africa.
“The issuance comes at a time when countries throughout the world are shifting towards mobilising long term credit capital for climate compatible growth,” saying Federal Government of Nigeria and Lagos are leading the shift in Green finance, Green bond matter because they provide affordable long term finance for projects.
She added that the Green bonds also deepen domestic capital markets.
“The UK is proud to partner with Lagos and Nigeria and our partnership is firmly based on driving mutual growth.
“Lagos State has shown other sub-national governments in Nigeria and throughout the world that they can access capital markets, attract strong demand for the markets, and issue high quality industrial goods.
This sets an important precedent for other states, and we hope many others will follow this path because it creates real opportunities to mobilise capital for climate change.”
The Commissioner for Finance, Mr Abayomi Oluyomi, said the signing is an achievement that reflects the State’s continued commitment to climate-friendly infrastructure, sustainability, and the long-term resilience of the environment.
“The rigorous project selection process for the Green Bond underscores our dedication to financing projects that directly support the UN Sustainable Development Goals and deliver measurable environmental benefits.
It is also noteworthy to mention that not only did we obtain a second opinion on the Green bond but our Green Bond also meets global standards and are certified by the globally recognised Climate Bonds Initiative (CBI).
“The issuances are a laudable achievement and testament to the sustained willingness of Lagos State to access and responsibly utilise the domestic capital markets, as well as the tremendous support and confidence that investors continue to show in our economy,” Oluyomi added.
Also speaking, the CEO of Chapel Hill Denham, Bolaji Balogun said the event is a congratulatory occasion for Lagos State’s achievements for setting high standards under the governor’s leadership.
Balogun noted, “Many states in Nigeria cannot even issue bonds in public markets because they do not have either the transparency around the way that they do business or in some instances, the compliance that has ensured that Lagos continues to be the gold standard.
I believe very, very much that the world is becoming much more African and this city state Lagos is very much at the center of that.
“And it can only continue to do what it does by using public markets in a very, very substantial way.”
For a better society
Follow us across our platforms:
Instagram – https://www.instagram.com/championnewsonline/
Facebook – https://web.facebook.com/championnewsonline
LinkedIn – https://www.linkedin.com/company/champion-newspapers-limited/
https://x.com/championnewsng/
You can also like and comment on our YouTube videos.
https://youtu.be/QIBfD1tT80w?si=R4Qf3so2LxYu3GC2
