Ekiti To Raise N5bn On Bond

The Ekiti State Government has completed its N25 billion bond issuance programme with second trenche  offer for subscription of five billion naira at 14.50 per cent fixed rate.

Reports said that the state under the second trenche raised the sum of  five billion naira for capital projects through book building.

The application list opened and closed on December 31, 2013.

A breakdown of the offer document made available to the press showed that N1.58 billion is earmarked for the construction of Ekiti-Kete pavilion in Ado-Ekiti.

The rehabilitation of Ire Burnt Bricks Ltd in Ere-Ekiti will gulp N966.89 million, while River Ero bridge construction will take N220.36 million.

Also, construction of Ilawe-Igbaraodo Ibuji road will take N894.69 million, while the sum of N1.14 billion will be used for Ikole-Ijesa Isu-Ilumoba road.

Speaking at the completion board meeting held in Lagos,  Ekiti State Governor, Dr 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 fund would complement the N20 billion first tranche.

He emphasised that the purpose of the bond was to complete regeneration exercise started in the state two years ago to fast tract economic growth.

He said that in the next one year all, the projects mapped out for the bond purpose will be completed as they are not paper projects.

The governor also commended investors for confidence shown to the state’s bond issuance programme, adding that they would not be disappointed.

He lauded the security and Exchange Commission (SEC), Debt Management Office (DMO) and Ministry of Finance for ensuring the success of the bond.