Lagos — The Lagos Sate government, yesterday, signed an agreement with consortium of capital market operators to raise N80 billion bond aimed at financing infrastructure renewal in the state.
The bond represents the first tranche of N167. 5 billion expected to be raised by the state through the process.
While speaking after the signing of the agreement at the State House in Ikeja, Governor Babatunde Fashola said the choice of the bond was due to lower interest offered compared to borrowing directly from the bank.
He said the money expected to be repaid in seven years will be deducted from the monthly statutory contributions of the state.
It is also the fourth time the state is raising funds via bond issuance to drive its infrastructure development.
The total sum is to be invested in infrastructure development which remains the thrust of Fashola led administration.
At the completion board meeting for the deal at Lagos House, Ikeja, which attracted all participating financial houses and stock broking firms, Fashola assured them that the money would be tied to specific projects that add value to the state economy.
To benefit from the fund are such ongoing projects like expansion and reconstruction of the Lagos-Badagry Expressway, Blue line rail corridor, ferry terminals, construction and completion of health institutions.