Vanguard (Lagos)

23 November 2012

Nigeria: Lagos N80 Billion Infrastructure Bond Agreement Signed

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.

Ads by Google

Copyright © 2012 Vanguard. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.