Board meeting convened by the Lagos State government, on Thursday, authorised and approved the Series 1 Bond Issuance of N80 billion, representing 14.5 per cent of the state government’s N167.5 billion debt issuance programme, which terminates in November 2019.
Addressing the meeting, which took place at the Banquet Hall, Lagos House, Alausa, Governor Babatunde Fashola said the money to be raised from the bond issuance would not be used for paying salaries or buying fuel, but for long tenure infrastructure.
He added that projects like bridges, roads, schools, hospitals and clinics were among what the funds would be deployed for, adding that a mini photo exhibition of infrastructure was arranged at the venue to assure investors.
According to the governor, the bond issuance would take care of projects like Badagry Expressroad expansion, the Blue Line, Ferry terminals, health institutions, completion of the Ayinke House project, maternal and child care centres, among other structures that would help build the desired Lagos.
The governor said the issuing houses, book runners, rating agencies, joint stockbrokers and receiving banks were not just interested in the bond issuance for its sake, but because they were beneficiaries of the infrastructure.
“This is the first time a debt issuance of this size is being undertaken by any state and it also represents the fourth time Lagos State is approaching the market,” the governor said, adding that the ability of Lagos State to approach the market was hinged on the credibility of the government.
Speaking earlier, the Managing Director of the Lead Issuing House/ Book Runner Chapel Hill, Mr Bolaji Balogun, had congratulated Governor Fashola and his team, saying Lagos State was always setting precedents.
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