Lagos issues N29.3B Green Bond for sustainable infrastructure

Lagos State has made history by issuing its first-ever Green Bond, raising N29.3 billion to fund climate-resilient and sustainable infrastructure projects.

The announcement was made during a ceremony on Thursday at Balmoral Hall, Victoria Island, marking a significant milestone in the State’s efforts to attract long-term capital market financing.

Governor Babajide Sanwo-Olu described the development as a strong endorsement of investors’ confidence in Lagos’ future and its commitment to sustainable development.

The Green Bond, part of the N1 trillion Debt and Hybrid Instruments Issuance Programme, was initially set to raise N14.815 billion at a 16 percent coupon rate but received bids totaling N29.29 billion, more than double the target.

At the same event, Lagos also allotted a Series IV Conventional Bond, targeting N200 billion but oversubscribed to N310.06 billion.

Opting for the green shoe option, the State raised N230 billion at a 16.25 percent coupon rate, marking the largest bond issuance in its history.

“The successful issuance of both the Series III Green Bond and Series IV Conventional Bond is more than a financial transaction; it is a bold statement of confidence in Lagos’ future,” Sanwo-Olu said.

“The proceeds will be channelled into critical infrastructure across transportation, housing, environment, healthcare, education, urban renewal, and other sustainable projects that meet the State’s long-term needs.”

Finance Commissioner Yomi Oluyomi confirmed that the Green Bond met global standards, certified by the internationally recognized Climate Bond Initiative.

He emphasized that beneficiary projects were carefully selected to directly impact the State’s growth and align with the Sustainable Development Goals.

Chapel Hill Denham CEO, Bolaji Balogun, who served as financial advisor for the transaction, hailed the issuance as a new benchmark for transparency and investor confidence among sub-national governments in Nigeria.

The United Kingdom Deputy High Commissioner, represented by Ms. Temilola Akinrinade, also commended Lagos for the achievement, noting that the oversubscription reflected confidence in the State’s strategic planning, financial discipline, and Nigeria’s broader economic performance under President Bola Ahmed Tinubu.

Sanwo-Olu concluded by reiterating the State’s commitment to accountability, efficiency, and ensuring that every resource raised translates into tangible improvements in residents’ lives.