By Dipo Olowookere
The Lagos State government has sourced N137.3 billion from bond investors at a coupon rate of 13 per cent per annum.
The funds would be used to address part of the infrastructure deficit in the metropolis, the Governor, Mr Babajide Sanwo-Olu said on Monday.
Some of the projects to receive intervention include the 10-km Regional Road in Eti Osa, six-lane Lekki-Epe Expressway, Ijeododo Road in Alimosho and Oba Sekumade Road in Ikorodu, among others.
The state government had planned to raise N125 billion from the capital market but due to the high demand for the debt instrument, it was increased to N137.328 billion.
The paper with a maturity of 10 years is the third of the Lagos State’s Series IV N500 billion debt issuance programme. The total amount raised by the state government is now N377.715 billion.
Speaking at a ceremony to sign the documents required by the Securities and Exchange Commission (SEC) to facilitate the exercise, Mr Sanwo-Olu said the oversubscription demonstrates the confidence of investors in the state’s ability to deliver on its infrastructural and socio-economic developmental objectives, while meeting repayment obligations.
He said the iconic projects for which the funds would be earmarked would contribute to a better quality of living for the residents, while also creating a more enabling environment for commercial and economic activities.
“Lagos once again marks another milestone in the domestic debt capital markets, with the issuance of the largest bond ever by a sub-national Government in Nigeria.
“The signing ceremony finalises the issuance of N137.3 billion bond at 13 per cent fixed rate in our Series IV bond issuance under the N500 billion fourth debt issuance programme.
“We set out to raise up to N125 billion, but we closed the book with bids totalling N137.3 billion. This is a strong response from the investing community to our administration’s debut bond issuance.
“This humbling achievement is a testament to continued investors’ confidence in the state’s ability to deliver on its infrastructural and socio-economic developmental objectives, and also to meet repayment obligations.
“In line with our vision to build a Greater Lagos, proceeds from this bond will be used to finance infrastructure projects, primarily in roads, environment and healthcare. These projects include 10-km Regional Road in Eti Osa, six-lane Lekki-Epe Expressway, Ijeododo Road in Alimosho and Oba Sekumade Road in Ikorodu. These will contribute to a better quality of living for our people, while also creating a more enabling environment for commercial and economic activity,” the Governor said.
Mr Sanwo-Olu said there had been multiplier effects in socio-economic activities felt from the previous intervention capital raised justified the cost of investment in critical sectors.
He said Lagos had maintained high discipline on the size and pricing of its bonds, noting that the State got the clearance to proceed with the issuance as its coupon of 13 per cent yearly fell within the acceptable clearing bid.
The Governor disclosed that the issuance process started in April based on the advice of the state’s transaction advisers.
He applauded the Federal Ministry of Finance, SEC, National Pension Commission (PENCOM) and Debt Management Office for supporting the state’s infrastructure drive.
Commissioner for Finance, Dr Rabiu Olowo, gave summary of the bid book in respect to the bond, pointing out that 319 bids were submitted during the offer period, while total bids at N146.328 billion value were received.
Mr Olowo said N137.328 billion qualified under the terms of the offer at the clearing price of 13 per cent per annum.
“In April 2021, we accelerated an ongoing conversation on the need to quickly intervene on the huge infrastructure gap in the face of limited financial resources. We took advantage of the favourable investment climate in the capital market to initiate a bridge to finance transaction by redeeming and refinancing the existing bonds.
“It is fulfilling to note that despite the hurdles that were faced, we have been able to achieve the target we set for ourselves. In fact, we exceeded the target. Many thanks to Mr Governor for his timely intervention at different phases. This is undoubtedly another momentous transaction for Lagos,” he said.
Representative of the 24 issuing parties and Managing Director of Chapel Hill Denham, Mrs Kemi Awodein, described the bond as a “landmark transaction” and largest to be issued by a non-federal government entity.
Bitcoin Crash: What Nigerian crypto community is saying
Emeka Nwosu, @_Nwosu_, Co-founder & COO of Scalex a Nigerian crypto P2P system, stated that the recent crash in the crypto market was expected and we still expect some more corrections in the coming days to weeks.
He added that “2020 & 2021 was a monumental period for the crypto space with loads of protocols reaching new All-time highs and this also coincided with the influx of investors.”
He added that with the inflation figures coming out of the US and the expectation of monetary policies targeted at tightening money supply we are expecting a rise in interest rates this year, citing that most people will move assets from more volatile markets to more secure ones.
“The impact of this will be a sluggish recovery in the crypto market but it will recover because a lot of other possibilities have been unlocked. The Metaverse as well as Facebook and multiple tech giants moving into the blockchain space will continue to drive interest. So I predict a very healthy year for the Market. On BTC, the Lightening Network and Taproot will take centre stage this year. We expect to see good recovery on BTC, it is the Alpha Asset and it won’t disappoint,” he said.
Germ Traps in the Kitchen
From fridges to coffee makers, these are 5 germ traps in your kitchen.
We all want our homes to feel sparkly clean, but there are some areas that may not be making it onto your household chores list.
Aisha Pandor, whose on-demand home services company SweepSouth helps people to keep their homes spotless, lists the places we often forget to clean.
In a study by global health organisation NSF International looking at where the highest concentration of germs can be found in the average household, three of the top five germ hot spots were in the kitchen – which leads to the first area that needs a good clean.
The back of your fridge
Topping the list of places in the home that rarely gets cleaned is the back of the fridge – that’s the exterior back, not inside! The coils located there work to cool the air down, but they can’t do so efficiently if they’re coated with grime. To reach the coils, Aisha advises you to unplug your fridge, pull it away from the wall and gently brush off any dirt and dust on the coils.
Do this annually and it will help you save on power costs. A fridge is one of the top energy-using appliances in the home, and simply cleaning its exterior coils can reduce the amount of energy it uses by up to 30%. Remember to leave space between your fridge and the wall once you’ve pushed it back into position, to allow air to freely circulate.
Tiled backsplashes are often overlooked during cleaning, but they’re notorious for attracting grease and grime. That grease acts as a magnet for dust and dirt, says Aisha — not exactly the type of environment where you want to be preparing food.
To clean backsplashes using natural products, mix two cups of distilled white vinegar with a cup of water and 15 drops of eucalyptus oil. Dab a cloth into the mixture and rub over the tiles to clean. You can use this cleaning mixture on any shiny non-porous surface, like sinks, too.
Ovens and hobs
At the very heart of the kitchen’s food preparation, ovens are prime real estate for germs. Clean the interior regularly, and line the bottom with foil to catch any drips and spills. When the foil becomes grimy, simply peel off and throw it away.
It’s not just the inside that needs cleaning, though — stove knobs are in the top 10 for common places where germs hide. To clean, remove the knobs and wash in hot soapy water. Rinse well, allow to dry, and reinstall. On a gas hob, dismantle the gas rings and clean separately in hot soapy water.
Chances are that you seldom take a close look at your can opener, yet it’s surprising how grimy this kitchen aid can become. Can openers can harbour bacteria like salmonella and e.Coli, and should be washed after every use to clean the gears and cutting wheel.
Dry thoroughly to prevent rust. If there’s a build-up of dirty residue in your can opener’s wheel, Aisha has a nifty trick to clean it: simply clamp the wheels onto a piece of dry paper towel and turn the handle to get rid of any gunk.
Coffee maker cleanse
Coffee machines’ water tanks or reservoirs usually have lids to stop dust, dirt and insects from getting in. However, a study by a health organisation, NSF International, of where the highest concentration of germs can be found in the average household, showed that coffee machine water tanks are the fifth most germ-ridden place in the house.
A tank’s moist, dark, location is a prime place for germs and bacteria to grow. In fact, the study discovered that 50% of households had yeast and mould in their coffee maker water tanks, and one in 10 had traces of coliform, a bacteria found in animal and human faeces that can cause gastrointestinal upset and flu-like symptoms. If you regularly make coffee, Aisha advises that you rinse the water reservoir regularly — if not daily, at least every week.
While experts do say we need some exposure to germs to help build strong immune systems, we need to limit being around germs that cause serious illnesses, says Aisha. By cleaning the above areas regularly, you’ll help keep your kitchen more hygienic and safer.