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​Lagos Closes N85bn Bond Issuance Programme

The Lagos State government on Monday announced that it had closed the N85.14 billion Series II Bond Issuance, which it said, was designed to improve the physical and social infrastructure in the state.
Also, the state government outlined plans to transform the blighted areas of Oworonshoki waterfront into one of the biggest transportation, tourism and entertainment hubs in Nigeria.
These were contained in separate statements issued by the Commissioner for Finance, Mr. Akinyemi Ashade and his Waterfront Infrastructure Development counterpart, Mr. Ade Akinsanya.
According to the statement, Ashade said the bond was issued in two tranches of N46.37 billion (16.75 percent Tranche I) maturing August 2024 and N38.77 billion (17.25 percent Tranche II) maturing August 2027, under the N500 billion Third Debt Issuance Programme.
He said that the N85.14 billion Series II issuance was the largest bond issuance in Nigerian capital markets in the last four years and the second largest issuance ever, noting that it was the first time any non-FGN issuer in Nigeria has been issued out to 10 years, thereby extending the non-sovereign yield curve.
“We value the reputation we have earned as the most responsible issuer in the Nigerian capital markets and thank everyone who has worked with us to deliver a successful outcome,” Ashade said.
“In challenging market conditions, we are encouraged by the sustained support that the Lagos State credit story has received from investors for which we are grateful. This support is critical to our quest to improve the physical and social infrastructure in the State and lift the economic and social welfare of all citizens of Lagos State,” Ambode explained
He said Chapel Hill Denham acted as Lead Issuing House and Bookrunner and led an issuing party including 10 other Bookrunners, on what he described as a landmark transaction.
In the other statement, Akinsanya outlined plans to transform the blighted areas of Oworonshoki Waterfront into one of the biggest transportation, tourism and entertainment hubs in Nigeria.
He said that the project would improve the aesthetics and security of the environment, while attracting investments in water transportation and boosting socio-economic activities in the axis, with the provision of shopping malls and related infrastructures.
He noted that the proposed entertainment and mega ferry terminal site, already under reclamation, “will divert a lot of human and vehicular traffic gridlocks away from the Lagos Island and take advantage of the central location and accessibility of the proposed Oworonshoki terminal to the Apapa Port, Ikeja Airport and other parts of the state.
“Youths and residents will enjoy quality sports, recreational, entertainment and emergency response facilities at the terminal. Commuters transiting through the terminal will not only enjoy state-of the arts infrastructure, they will also be able to park and ride and park and cruise from the state-of-the-art jetty, thus reducing the carbon emission level and travel time within the city.”
Akinsanya said the reclaimed 29.6 hectares site of the project, which would involve revetment work to protect the jetty area, would also eliminate illegal dredging activities in the area.
Explaining that the project will be in three phases, Akinsanya said that it was also part of efforts by the state government to revitalise and augment inter-modal system of water, rail and road transportation and housing development, just as he revealed that the Epe, Badagry and Mile 2 waterfronts have also been earmarked in the Master Plan for similar regeneration.

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