Investors willing to invest in the N50bn Project Medium Term Notes to finance the Cleaner Lagos Initiative (CLI), have been reassured of an attractive Return on Investment (ROI), as the State has outlined its strategy to fund and deliver an effective waste management service.
The CLI note is a corporate bond being issued by a private funding SPV and backed by the State’s ISPO,” and by the Lagos State Government,
At a recent CLI Investors’ Roundtable, potential investors were presented with the innovative financing structure; of which the first tranche of the N27bn is being issued to fund and operate the Cleaner Lagos initiative which commences in September.
The first tranche, which has a 5-year tenure and 17.5 per cent coupon, opened to qualified investors from August 14 for a two week period.
Lagos State Commissioner for Environment, Dr Adejare Babatunde Samuel, in his opening remarks at the Investors’ Roundtable, said the partnership with the private sector was essential in achieving a long-term financing of waste management in Lagos.
He said the Cleaner Lagos Initiative is public-private sector driven because the state government understands the value which public-private partnership plays in driving the economy and achieving maximum results in crucial projects.
According to him, Visionscape, a leading global environmental utility group, has been engaged to operationalize the CLI and provide the required infrastructure for environmental waste management services in the state.
Executive Director, Eczellon Capital, Dipo Wintoki, said the bond offers investors opportunity to take part in the transformation of Lagos State.