Ekiti N20bn bond gets stakeholders’ approval

The N20bn bond issuance programme of the Ekiti State Government has received approval and endorsement of stakeholders across the country.

A statement on Friday quoted the Governor of the state, Dr. Kayode Fayemi, as saying that the bond, which was oversubscribed, would be used to fund developmental projects across the state.

Fayemi, who spoke at the Completion Board Meeting of the bond in Ado-Ekiti on Friday, was quoted as saying that the state was set to use the bond judiciously to ensure that there was uniform development in infrastructure in the state.

He said, “For us in Ekiti State, we have come to realise the need to bridge the gap between the huge expectation of the people in the state and the meagre resources available to the state. We, therefore, came to the conclusion to raise this bond from the capital market.

“Since we have no choice but to pursue our eight point agenda, this bond will help the state develop agriculture, education and other infrastructure, and we will focus on using it to improve the lot of the state and its people within the next few years.”

While commending the governor for the initiative of seeking funds from the capital market, the Director-General of the Securities and Exchange Commission, Ms. Arunma Oteh, noted that funds from the capital market remained critical for the development of any state and the country as a whole.

According to her, the importance of raising funds from the market is key, as government and firms are made accountable and transparent in project financing and fund raising.

“The capital market provides avenue for everyone to access books of funds seekers, and this makes institutions to respect good corporate governance principle. I am fascinated by the performance of the state government and want to associate with it.

‘Within a short time, this government has set out a good agenda, which the people of the state are associating with,” she said.

In his speech, the state Commissioner for Finance, Mr. Dapo Kolawole, said that the recently approved N20bn bond was oversubscribed by N3m.

He added that the seven-year tenor bond was in two tranches. According to him, the first tranche to be floated is N20bn, while the second tranche will come later.

He said, “The bond, which has a coupon rate f 14.5 per cent, with A-rating by Agusto & Co., will be used for expansion of Ado Water Works to improve the availability of water to residents of the State.

“Other projects include the rehabilitation of Ero Dam- to prevent flooding; enhancement of agricultural development; and the rehabilitation of the Ikogosi Warm Springs & Resort Development, due to its popularity to increase the tourism potential of the state.”

Source: Punch/Udeme Ekwere