Babatunde Raji Fashola, Governor of Lagos State
The Lagos governor listed some of the projects the money would be used for.
The Lagos State Government on Wednesday issued a bond to raise N87.5 billion from the capital market to fund key on-going infrastructural projects in the state.
The bond was approved in Ikeja at a Completion Meeting between officials of the state government and major issuing houses led by Chapel Hill Denham.
The bond with a fixed interest rate of 13.5 per cent completes the state’s N275 billion debt issuance programme launched six years ago.
The government had in 2012 raised N80 billion through bonds out of the final tranche of N167.5 billion of the programme, which ends in 2020.
Governor Babatunde Fashola said at the meeting that the government continuously explored the option in order to meet its obligations to residents.
According to him, the need to make life more meaningful for the people through delivery of life-impacting projects necessitates the step.
“We are approaching the market to fund some ongoing projects to which we are committed.
“Some of these projects include Okokomaiko to Marina Light Rail Project; 70 million gallon p/d Adiyan Waters Works and expansion of Lagos-Badagry Expressway from four lanes to 10 lanes.
“The others are: Apapa CBD project; Mushin Isolo Road; Isolo-Isheri Ijegun Link bridge; Ayinke House, Specialist Maternity and Gynecological Centre; Atlantic Shoreline protection programme for our citizens.
“These are some of the projects which we intend to put the money to use. All of them have started, and I must emphasise that we are committed to their completion,” he said.
The governor expressed the optimism that the bond would be well subscribed, hinging his optimism on the success of the state’s previous bonds.
Mr. Fashola thanked investors for their consistent confidence in the state, saying their investments had helped to make the state better. He urged other states to draw courage from the state’s success story in bond issuance to explore debt financing to accelerate development.
He also urged residents to pay their taxes promptly, saying doing so would strengthen the capacity of government to deliver more development.
Members of the state executive council and top executives of financial institutions were among those who attended the meeting.