By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Niger State is set to list N12 billion infrastructure bond on the floor of the Nigerian stock exchange (NSE).
Sources at Planet Capital Limited, issuing house/book runner of the bond issue told Investadvocate. “We are almost through with the process of listing the bond on the daily official list of the NSE; probably by Tuesday next week,” the Planet Capital source said.
The N12 billion bond is part of the Niger State Government of Nigeria N21 billion medium term note programme (MTNP) in 2013.
According to the bonds prospectus obtained by InvestAdvocate, each series of Bonds may be listed on the Nigerian stock exchange (NSE) and/oradmitted to listing, trading and/or quotation by any other listingauthority, stock exchange and/or quotation system as may beagreed between the state and the issuing house; as specified inthe relevant supplementary shelf prospectus (SSP).
Thus, the N12 billion bond proposed to be issued will upon admission to the daily official list qualify as a securityin which Trustees may invest under the Trustee Investment Act Cap T22 Laws of the Federation of Nigeria, 2004 andwill also qualify as a government security under Section 20(1)(g) of the personal income tax Act, Cap. P8, LFN, 2004and Section 19 of the companies’ income tax Act, Cap. C 21, LFN, 2004. The Bond has been granted tax exemptstatus.
This is coming on the heels of about 11 months to handover by Mua’azu Babangida Aliyu, governor of Nigeria State which proposed the N12 billion infrastructure developments bond from the capital market to enable it complete development of some key sectors of the state economy.
This bond which is the third in the life of the Babangida Aliyu’s administration was floated about two (2) years ago to enable it complete some critical on-going projects in the three senatorial districts of the state.
At the signing of the agreement with the issuing house, Efe Akhigbe, Co chief executive officer (CEO) and head, capital market services at Planet Capitals said the funds will be judiciously utilised for the purpose for which it was obtained.
Akhigbe affirmed that Planet Capital decided to partner Niger state because the previous trenches of N6.0 billion and N9.0 billion bonds secured by the state were judiciously used by the administration of Babangida Mua’azu.
As earlier reported, Babangia Mua’azu, said part of the proceeds from the N21 billion Bond which is this N12 billion will be used to complete another bond financed road project, the Rijau-Dukku road.
Other areas of intervention are; the multi-billion Naira three arms zone initiated by the present administration in Minna, the state capital, an international modern market and park at Suleja and the Lapai-Gwari-Brigi/FUT, Minna.
Governor Aliyu also disclosed that the Kwakwuti-Gwada road currently under construction under the N9.0 billion bond in 2012/2013 will be completed.
The Niger State governor said other new projects that the N12 billion bond would be used for apart from the Suleja modern market, include the development of the Garam industrial layout and the Baddegi-Katcha road.
However, as at the time of filing in this report, we were unable to reach officials of the NSE for comment on the proposed listing of the Niger State N12 billion bond by Tuesday next week.
