The Lagos State Government yesterday said it will be raising N50 billion from investors to enable it to achieve cleaner environment through the effective waste management system.
Briefing investors on the bond issuance, the state’s Commissioner, Ministry of Environment, Babatunde Adejare said the Lagos State Waste Management Authority (LAWMA) currently operates in partnership with private sector participants for the collection of wastes within the state.
He said the current waste management framework, specifically the residential and general waste management system has degenerated over the years and needs to be improved through private sector participation.
He said that in an effort to create a waste management and recycling solution, the Lagos state Ministry of Environment and an environmental utility group, Visionscape have concluded plans to issue a N50 billion project-backed corporate bond in two tranches.
The first tranche of N27 billion will be offered from Monday August 14, 2017 at 17.5 percent coupon for a with five-year tenor. The offer ends on August 25, 2017.
The fund, he said, would be used to finance the mobilization of assets for residential and general waste collection under the Cleaner Lagos Initiative of the Ministry of Environment of Lagos State. It will also be deployed to the renovation and upgrade transfer loading stations and landfills in the state. It has an issue rating of A+ by Augusto and Co. Limited at an issue price of N1,000 per unit.
Adejare said the initiative is an example of how the private sector and government can work together for sustainable development.
He affirmed the government’s resolve to rid the state of refuse heaps and solicited the support of all residents for the soon-to-be fully launched Cleaner Lagos Initiative.
The cleaner Lagos initiative is a programme launched by the Lagos State Governor, Akinwunmi Ambode to effectively manage waste collection and create jobs across the 37 local government areas in the state. He said that the project will create over 27,500 jobs.
According to Adejare, with the passage of the Environmental Management and Protection Law 2017, Lagos State has the power to involve the private sector in the state’s waste management system.
“We are building a new culture of waste management in Lagos State. We are optimistic that all communities in Lagos State will see overall benefits of this drive to put an integrated waste management system in place,” he said.
Explaining the benefits of the bond, Executive Director Eczellon Capital Mr. Dipo Wintoki said the N50 billion bond issuance is a corporate entity bond and comes with guaranty. He said the fund will enable the state government to achieve Cleaner Lagos Initiative.
Source: Nigeria Today