The Lagos State Government’s ₦200 billion bond under its ₦1 trillion debt and hybrid instrument issuance closes on Friday, October 16, 2026.
The series 5 fixed rate, semi-annual bond with a tenor of 10 years, and book building price guidance of between 16.5% and 16.75%, with amortised principal repayment and a 36-month moratorium opened on Friday 9, 2026.
Net proceeds of the offer: ₦195,463,720,710.45 (after deducting the ₦4,536,279,289.55 offer cost representing 2.27% of the gross amount, according to the prospectus, will be used to finance the execution of what the government termed priority projects like the construction of new Massey Children Hospital by the Ministry of Health at a cost of ₦29.319bn or 15.00% of the net proceeds with a 16-month time frame; construction of a 280-bed General Hospital at Ojo Local Government Area also by the Ministry at ₦19.546bn or 10% in 18 months; while a total of ₦122.165bn is earmarked for Section II, Sub-Phase V (Mile 2 to Okokomaiko Lagos Rail Mass Transit Blue Line Project by the Lagos Metropolitan Transport Authority (LAMATA) over a 36-month period. Others include the construction of the Omu Creek with Bridge (Phase I), Ibeju-Lekki by the Office of Infrastructure for ₦24.432bn or 12.50% of the net proceeds in 24 months.
Lagos State is rated Aa- by Agusto & Co. and AA by GCR, reflecting what is termed the State’s robust and well diversified economy, which supports strong internally generated revenue (IGR) and financial autonomy with limited reliance on federal transfers.
The assigned ratings are further supported by the government’s acceptable expenditure structure, characterised by sustained capital investments in infrastructure and social services, alongside effective control of recurrent costs.
In addition, the ratings are upheld by the State’s strong capacity to meet financial obligations promptly, underpinned by its good cash-generating profile and sustained access to funding lines from the domestic capital market and financial institutions.
