Lagos breaks records with green bond surge
Lagos State has finalized a combined bond issuance of approximately 244.82 billion naira, marking a significant financial milestone. The transaction includes the first green bond ever issued by an African sub-national entity, valued at 14.815 billion naira, alongside a 230 billion naira conventional bond. Governor Babajide Sanwo-Olu stated that the net proceeds would fund critical infrastructure projects in transportation, housing, healthcare, education, and food security.
The offerings were met with substantial investor confidence, resulting in significant oversubscription. The conventional bond alone attracted bids totaling 310 billion naira, prompting the state to exercise its green shoe option and increase the final issuance. This successful placement establishes Lagos as the largest sub-national bond issuer in Nigeria.
Finance Commissioner Abayomi Oluyomi noted the green bond reflects the state’s commitment to climate-friendly development and aligns with global sustainability standards. The funds are designated for specific projects, including highway expansion, a new 280-bed hospital, solar power installations in schools, and agro-processing hubs.
