Nigeria’s Lagos State drew strong demand for its latest bond sale, with investors placing heavy orders for both its conventional and green offerings, officials announced.
The government said its conventional bond was significantly oversubscribed, while the green bond also attracted bids well above the amount offered.
Official’s said that the conventional note drew ₦308 billion ($214.4m) in orders against a ₦200 billion ($138.3m) offer, and the green bond received ₦28.7 billion ($19.9m) in bids compared with a ₦14.8 billion ($10.2m) target.
The state said the transaction ranks among the largest bond raises by a Nigerian subnational government and marks its first impact-focused climate bond.
Lagos, the country’s commercial hub, has been a frequent issuer in domestic capital markets as it seeks long-term funding for infrastructure.
According to Lagos State Governor Babajide Sanwo-Olu, the strong reception reflects investor confidence in the economic reforms undertaken at the federal level.
“This is a reflection of the global confidence in Nigeria’s economy, fostered by the bold reforms initiated by President Bola Ahmed Tinubu,” Sanwo-Olu said. “Ours is a testament to our resilience and the support of private sector partners who believe in our vision of building Africa’s model megacity.”
He said Lagos will continue to focus on transparency, prudent financial management and efforts to strengthen its position as a regional financial center.
Proceeds from the bonds will support priority infrastructure and social projects across Lagos, including upgrades in transportation, healthcare, education and environmental initiatives.
