FMDQ Holdings Plc and Financial Sector Deepening Africa have signed a Memorandum of Understanding (MoU) with the Lagos State Government to facilitate the issuance of the maiden ₦25 billion Lagos State Green Bond and other sustainability-linked debt securities towards achieving the global Sustainable Development Goals (SDGs).
Among those present at the remarkable signing ceremony held at the Lagos State House, Marina, Lagos, were the Executive Governor of Lagos State, Mr Babajide Sanwo-Olu; Commissioner of Finance, Lagos State, Dr Rabiu Onaolapo Olowo; Special Adviser, Office of Sustainable Development Goals and Investment, Lagos State, Mrs. Solape Hammond; and other members of the Lagos State Executive Council; as well as representatives of the NGBMDP Implementing Partners, including Mr Koko Bola Onadele, Chief Executive Officer, FMDQ Group and Mr. Mark Napier, Chief Executive Officer, FSD Africa.
Speaking at the signing ceremony, Governor Sanwo-Olu stated, “I strongly believe that the Green Bond Programme will open the doors of deep sustainable funds for infrastructure and social development for Lagos State, being the biggest player in the sub-national capital markets and therefore open new doors overall for lots of others.
“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. It is our intention 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”.
In his remarks, Mr Onadele stated, “FMDQ Group is proud and honoured to be part of this momentous signing ceremony. The dynamism of Lagos State as a hub for commerce and financial market activities, as well as its incredible potential for catalysing broad-based sustainable development, calls for the need to unlock and attract capital to fund key projects in the state.
“This will stimulate economic growth, enhance job creation and align the state’s THEMES (Traffic Management and Transportation, Health and Environment, Education and Technology, Entertainment and Tourism), as well as the security and governance agenda towards transitioning the state to a greener and more sustainable economy in line with the United Nations SDGs.
“This iconic MoU signing is timely and FMDQ Group, as the local partner to the NGBMDP and an agent of change empowering markets for economic progress towards delivering prosperity, is excited about this opportunity to support the developmental aspirations of Lagos State ‘’.
Furthermore, another of the Implementing Partners to the Programme, FSD Africa, represented by the Chief Executive Officer, Mr Mark Napier, commented, “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 state and we hope that other sub-national entities will consider following it on this journey. “Cities magnify aspects of climate change, including heat, flooding and sea level rise in coastal cities. Low carbon, climate resilient urban development, offer significant benefits and an opportunity for accelerated growth for the state”.
The United Kingdom’s Deputy High Commissioner, Mr Ben Llewellyn-Jones, in his remarks stated that the need to mitigate the impact of climate-related risk on millions of Lagosians is now urgent and pressing and that the UK Government, through its FSD Africa Development Programme, is committed to help mobilise green financing via the capital markets to support the Lagos State Government’s initiative to build a sustainable and resilient megacity.
“We are currently working with the Lagos 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 the government to strengthen its resilience, ahead of COP26 and thereafter,” he said.