‘Lagos N80 Billion Bond Oversubscribed’

28 Nov 2012

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Governor Babatunde Fashola

By Gboyega Akinsanmi
The N80 billion bond which the Lagos State Government floated last Thursday, has already been over-subscribed less than one week after lead issuing house, Chapel Hill Limited commenced the offer.

The State’s Accountant-General, Mr. David Sunmoni disclosed this Tuesday at a four-day workshop organised to enhance the human capital of the state’s financial managers at Lagos Chamber of Commerce and Industry (LCCI), Ikeja.

The N80 billion debt instrument was the first tranche of the state’s N167.500 billion debt issuance programme expected to terminate in November 2019. Governor Babatunde Fashola had listed projects such as bridges, roads, schools, hospitals and clinics are some of the projects to which the funds would be deployed.

At the workshop, Sunmoni said the financial credibility of Lagos “is a boost of public confidence in the state bond transactions. The result is continuous oversubscription each time Lagos approaches the market for debt issuance”.

He explained that Lagos credibility is bolstered by its ability to run a transparent and prudent financial system, which according to him, continues to attract best ratings by local and international rating firms such as Augusto and Fitch

According to him, this was further captured in the utilisation of funds raised through bond issuance in infrastructural development and consistent history of repayment of its debts. The accountant-general noted that the training of the state’s financial managers was to reposition them for effective service delivery in an environment that is becoming dynamic and highly competitive.

He therefore charged the financial managers/accountants to embrace the specialised Excel Modeling and Analysis programmes, saying the public they are engaged to serve expects nothing short of quality services.

He said the workshop was the “beginning of new beginning for all accountants in the state”, saying it is one way the state government “has devised to make all accountants in the service be at par with their counterparts all over the world. Participants at the workshop are drawn from ministries, departments and agencies (MDAs).”

Tags: Nigeria, Featured, Business, LCC, MDAs

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