Lagos floats second N50bn bonds for infrastructure

[bayo4luv]

Lagos State government on Tuesday took a step forward in its bid to complete ongoing infrastructural projects in the state with the floating of N50 billion bonds, being the second tranche of its total N275 billion debt issuance programme. 

The first tranche of N50 billion of the bond was issued in 2008 and was oversubscribed by investors.   

The state governor, Babatunde Fashola, flagged off the second tranche of the bond instrument on Tuesday at an investors' forum in Lagos. The bond like the first tranche will be issued through designated security outfits to members of the public for a period of seven years at a fixed interest of 11 percent, trade-able on the floor of the Nigerian Stock Market. 

According to Fashola, the proceeds of the initial offer had been judiciously utilised to impact on the people of the state and the second part will go the same way, noting that government is determined to make a difference in the areas of roads, schools, hospitals, water supply, jetties, light rail, Lagos-Badagry expressway, Lekki-Ikoyi Bridge, among others.   

"The micro economic impacts are being measured in the roads we have financed which is improving travel time; it is evident in the children and women hospitals, three of which now give us 300 more bed spaces to ensure that women and children do not die at childbirth; it is evident in the recently commissioned water projects that have added over 50 million gallons of water to the supply stock in the state, the delivery of desks and chairs for teachers and students as a commitment to develop a human capital resource for our state's future", he said.

Lagos floats second N50bn bonds for infrastructure

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