The Nigerian Capital Market during the week recorded an unprecedented feat as the N22 billion State of Osun offer was over-subscribed by more than 100 per cent.
This was disclosed in Osogbo the state capital, at the completion ceremony between the state government and the Joint Issuing Houses for a N30 billion – 14.75% fixed rate development bond (Tranche 1) due in 2019.
According to the State Government, the state went to the Capital Market to raise N22 billion but eventually realized N45.1 billion, which translates to over N100% over-subscription.
Commissioner for Finance, Dr. Wale Bolorunduro, said the N22 billion bonds also received 78 entries, which represents another unparalleled record in the annals of Capital market transactions.
Similarly, the state’s bond issue also changed completely the face of Capital market with over 60% of the subscription cornered by the Pension Fund Administrators.
This scenario represents a departure from the past in which offerings were dominated and snapped by the banks that normally played crucial roles in bond issuance.