Ekiti State issues N5b bond for capital projects

The Ekiti State Government has completed its N25 billion bond issuance programme with the second tranche offer for subscription of N5 billion at 14.50 per cent fixed rate.
The state, in the second tranche, raised N5 billion for capital projects through book building.
The application list opened and closed on December 31, 2013.
A breakdown of the offer document showed that N1.58 billion is earmarked for the construction of Ekiti-Kete Pavillion in Ado-Ekiti.
The rehabilitation of Ire Burnt Bricks Limited in Ere-Ekiti will gulp N966.89 million, while River Ero Bridge construction will take N220.36 million.
Also, the construction of Ilawe-Igbaraodo Ibuji Road will take N894.69 million, while N1.14 billion will be used for Ikole-Ijesa Isu-Ilumoba Road.
Speaking at the completion board meeting held in Lagos, Governor Kayode Fayemi said that the funds raised would be used for completion of critical projects.
Fayemi said that the bond was primarily for regenerated projects that would yield dividends to the people of the state, adding that the funds would complement the N20 billion first tranche.
He emphasised that the purpose of the bond was to complete the regeneration exercise started in the state two years ago to fast track economic growth.
“In the next one year, all the projects, mapped out for the bond purpose, will be completed and these are not paper projects,” Fayemi said.
The governor also commended investors for the confidence shown to the state’s bond issuance programme, adding that they would not be disappointed.
Fayemi lauded the Securities and Exchange Commission, the Debt Management Office and the Ministry of Finance for ensuring the success of the bond.
The lead issuing house/lead book runner to the bond is Greenwich Trust Limited, while the joint issuing houses/co-book runners are FBN Capital Limited and Fidelity Securities Limited.
Others are Morgan Capital Securities Limited, Sterling Capital Market Limited and Skye Financial Services Limited.
Investors in the bond include Ecobank, Skye Bank, Wema Bank and Diamond Bank.