The Lagos State Government says it is set to go to the capital market to float sixty billion naira bond for infrastructural development.
The government explained that the bond was the first tranche of the five hundred billion naira bond that the Lagos State House of Assembly approved for the Governor AKINWUNMI AMBODE-led administration a few months ago.
While speaking at the Annual General Meeting of Bond Series and Rating in Lagos, the Commissioner for Finance, AKINYEMI ASHADE, said the state would go to the capital market to raise the sixty billion naira this month.
ASHADE said the state government needed deficit financing for “massive infrastructural development” across the state, adding that the strength of the state’s Internally Generated Revenue qualified it for deficit financing because means of paying back were on ground.
The commissioner said further and I quote, “The government is drawing N60bn bond from the N500bn bond approved by the state Assembly. The bond will be floated any moment from now.
“Next year, the government will draw another N100bn bond. The N500bn bond is throughout the period of the current administration, end of quote.”
ASHADE stated that the Securities and Exchange Commission had visited the state to assess the projects that the bond would cater to, adding that once the state got the nod in the month, it would float the bond.
The commissioner, who noted that the AGM was on the three previous bonds floated by the state government, said the bonds were used to execute worthwhile projects.