Lagos State Government has begun move to raise new loan through bond issuance, following the signing of a N115 billion 10-year 15.25 per cent Series 1 bond issuance due in 2033, as well as another N19.8 billion seven-year 14.675 per cent fixed return forward-Ijarah lease Sukuk due in 2030 under its N1 trillion debt and hybrid issuance programme.
The state governor, Babajide Sanwo-Olu, who spoke during the first set of allotments at Lagos House in Alausa, yesterday, said the proceeds of the financial instruments would be deployed to fund infrastructure in various sectors, including education, health, energy and mineral resources, agriculture, roads and drainage systems.
Also, Commissioner for Finance, Rabiu Olowo, explained that interest rates on the 10-year tenure bond is 15.25 per cent, while that of seven-year tenure Sukuk is 14.675 per cent.
Pointing out that Lagos is the second State to explore Sharia compliant financing model, Olowo noted that the State has retained the trust of the investment community because it has not taken their support for granted.
The ceremony was attended by member of the State House of Assembly overseeing finance as well as the Commissioners for Economic Planning and Budget and that of Justice and representatives of the two issuing houses and bankers.
