The Lagos State Government on Thursday completed two landmark bond issuances totaling N244.815 billion, marking a historic achievement in Nigeria’s capital market and boosting the state’s drive to accelerate infrastructure development.
The state successfully closed its N14.815 billion Series III Green Bond, making Lagos the first sub-national entity in Nigeria to issue a certified green bond under a public debt programme.
The signing ceremony, attended by Governor Babajide Sanwo-Olu, government officials, investors, and market stakeholders, also featured the completion of a N230 billion Series IV Conventional Bond, the largest sub-national bond issuance ever recorded in Sub-Saharan Africa.
Governor Sanwo-Olu described the day as a significant milestone, noting that the issuances were the largest ever by Lagos State and any sub-national government in the country.
The five-year fixed-rate Green Bond, issued under the state’s N1 trillion Debt and Hybrid Instruments Issuance Programme, attracted N29.29 billion in subscriptions almost double the offered amount.
The Series IV bond similarly surpassed expectations, drawing N310.06 billion in bids against an initial target of N200 billion, prompting the activation of a green-shoe option to accommodate the excess demand.
Sanwo-Olu said the Green Bond demonstrates Lagos’ commitment to climate-friendly, sustainable, and resilient infrastructure.
“This achievement reflects our State’s continued commitment to climate-friendly infrastructure, sustainability, and the long-term resilience of our environment,” the governor said.
“Our Green Bond meets global standards and is certified by the globally recognised Climate Bonds Initiative.”
He added that the funds raised will support key projects, including expansion of the Blue and Red Rail Lines, construction of the Lekki–Epe Airport Road, affordable housing schemes, upgrading healthcare facilities including a new 280-bed hospital, solar power installations across schools, and the development of agro-produce hubs to strengthen food security.
Commissioner for Finance, Abayomi Oluyemi, said the dual issuances reaffirm Lagos’ leadership in Nigeria’s sub-national debt market and align with global sustainability benchmarks. He emphasised the government’s commitment to transparency and prudent fund management.
Bolaji Balogun, CEO of Chapel Hill Denham, praised the state for maintaining strong governance and compliance standards. He noted that Lagos had achieved two major market firsts: the first certified sub-national green bond in Africa and the largest sub-national bond issuance in Sub-Saharan Africa.
The landmark transactions further solidify Lagos State’s reputation as a frontrunner in innovative financing for sustainable urban development.