The Lagos State Government has formally listed two bonds worth a combined N244.815bn on the Nigerian Exchange Limited.
This was disclosed in the NGX weekly market report on Friday. The listings fall under the state’s N1tn Debt and Hybrid Instruments Issuance Programme.
Leading the sustainable finance component is the N14.82bn Series 3 Green Bond. The five-year instrument, which matures in November 2030, carries a fixed interest rate of 16 per cent per annum.
The Green Bond is aimed at financing environmentally friendly projects, reflecting the state’s commitment to climate-resilient infrastructure. Investors will receive semi-annual coupon payments in May and November. Principal repayment will be amortised after an initial 24-month moratorium from the issue date.
In addition, the state listed a N230bn Series 4 Fixed Rate Bond. The ten-year instrument offers a coupon rate of 16.25 per cent per annum and is scheduled to mature on November 20, 2035.
The Series 4 bond includes a call option that allows the Lagos State Government to redeem the bonds at par after 60 months, subject to regulatory approvals and adequate notice to bondholders. Like the Green Bond, it also features a 24-month moratorium on principal repayment before amortisation begins.
The issuance was facilitated by a consortium of financial institutions. Chapel Hill Denham Advisory Limited acted as Lead Issuing House and Book Runner for both instruments. Other participants included Stanbic IBTC Capital, United Capital Plc and Cardinal Stone Partners.
Meristem Registrars and Probate Services Limited is managing the registers for the issuances.
The dual listing highlights the depth of Nigeria’s capital market in supporting sub-national governments to finance large-scale infrastructure. By combining traditional and green financing instruments, Lagos State continues to position itself as a leader in innovative public-sector funding in West Africa.
