News Column

NSE Lists Ekiti, Nasarawa N10 Billion Bonds

May 4, 2014

Goddy Egene

The Nigerian Stock Exchange (NSE) last Friday listed the Ekiti State N5 billion 14.5 per cent fixed rate due 2020 and the Nasarawa State N5billion 15 per cent fixed rate bond due January 6, 2021.

The Ekiti bond was the second tranche under its N25 billion bond issuance programme while the Nasarawa bond is the first tranche under its N20billion Medium Term note programme. Listing of the two bonds would enable investors to trade the securities.

Ekiti State raised the N5 billion from the capital market to finance five major projects under as the government seeks to complete major developmental projects that would impact on the socio-economic and urban-rural integration.

The net proceeds of the N5 billion bond issue, estimated at N4.80 billion, will be used to complete five major including the construction of the multi-purpose 10,000-capacity Ekiti-Kete pavilion, rehabilitation of Ire Burnt Bricks Limited, construction of River Ero bridge, construction of Ilawe-Igbaraodo-Iboji road and Ikole-Ijesa Isu-Iluomoba road.

Governor of Ekiti State, Dr. Kayode Fayemi, said the approval and success of the second tranche of the bond programme reflected the market's confidence in the state as evidenced in the judicious use of the proceeds of the previous issuance.

According to him, the state had committed the proceeds of its first tranche to several laudable projects that continue to bear testimonies to efficient use of funds including the Ikogosi Warm Spring, school of agriculture and roads across the state. He pointed out that all the new projects identified under the new bond issue would have immense positive impact on the development of the state.

He noted that while his administration was desirous of fast-tracking the pace of development through additional funds from the capital market, it is committed to efficient debt management as N9.6 billion has already been paid out of the initial N20 billion issue.

"We believe that we owe a duty to the generation coming to really put these infrastructures in place," Fayemi said.

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Source: AllAfrica

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