(Ecofin Agency) - In Nigeria, the Lagos state government on Monday raised N85.14 billion ($271 million) through the issue of 7- and 10-year bonds to fund infrastructure and environmental projects across the state.

According to Akinyemi Ashade, the state commissioner for finance, the bond consists of a N46.37 billion in 7-year debt with a 16.75% interest rate and a N38.77 billion in 10-year paper with 17.25% interest rate.

He noted that the bond issue was part of a N500 billion debt programme approved by the state parliament last year. In 2016, the state sold N60 billion worth of 5-year bonds.

“We value the reputation we have earned as the most responsible issuer in the Nigerian capital markets and thank everyone who has worked with us to deliver a successful outcome,” he said.

Lagos, Nigeria’s commercial capital, which has a population of more than 21 million people has major infrastructure deficit across the various socio-economic value chains.

Although most states in the country depend on their share of federal oil revenues, Lagos has decided to explore the debt market to fund its developmental projects.

Anita Fatunji