FMDQ Holding Plc and Financial Sector Deepening (FSD) Africa have executed a memorandum of understanding (MoU) with Lagos State Government to facilitate the issuance of the maiden ₦25 billion green bond and other sustainability linked debt securities towards achieving the United Nations (UN) Sustainable Development Goals (SDGs).

Among those present at the ceremony held in Lagos State House, were the Governor of Lagos State, Babajide Sanwo-Olu; the Commissioner of Finance, Lagos State, Dr. Rabiu Onaolapo Olowo; Special Adviser, Office of Sustainable Development Goals and Investment, Lagos State, Solape Hammond and other members of the Lagos state executive council.

Speaking at the ceremony, Sanwo-Olu expressed optimism that the bond would open doors of sustainable funds for infrastructure and social development for the state, being the biggest player in the sub-national capital markets.

“As a state, we embrace the transparency and commitment that comes with a green finance framework. We believe it sends an important signal to investors in the market about who we are – a state that is fiscally responsible, prudent and disciplined.

“We intend to continue to validate this reality, as well as our commitment to building a greater, circular, climate-resilient and prosperous Lagos State which is unwavering”.

Chief Executive Officer, FMDQ Group, Bola Onadele said the dynamism of Lagos state as a hub for commerce/financial market and the state’s potential for catalysing broad-based sustainable development called for the need to unlock and attract capital for key projects.

He pointed out that the bond would stimulate economic growth, enhance job creation, and align the state’s agenda towards transitioning to a greener and more sustainable economy in line with the United Nations SDGs.

FSD Africa, represented by the Chief Executive Officer, Mark Napier said “FSD Africa is pleased to offer its support to Lagos State as it moves towards issuing its first green bond.

“This demonstrates excellent leadership by Lagos State, and we hope that other sub-national entities will consider following Lagos State on this journey. Cities magnify aspects of climate change, including heat, flooding and sea-level rise in coastal cities.”

United Kingdom’s Deputy High Commissioner in Lagos, Ben Llewellyn-Jones said the need to mitigate the impact of climate-related risk on the millions of Lagosians is urgent and pressing.

Therefore, he assured that the UK Government, through its FSD Africa Development Programme, is committed to helping mobilise green financing through the capital market to support the Lagos State Government’s initiative to building a sustainable and resilient megacity.

“We are currently working with the State Government to build a pipeline of green infrastructure projects through our portfolio of programmes, including our Future Cities Nigeria Development Programme. We will continue to work with Lagos State to strengthen its resilience, ahead of COP26 and thereafter.”

Globally, the green bond market has shown rapid growth as government and corporate entities are raising funds from the Debt Capital Markets (DCM) to finance environmental and climate projects as well as support the development of their countries.