By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-Nigeria’s North eastern state Bauchi has unveiled its plans for the use of proceeds in its proposed N15 billion bond issuance maturing in 2021 under the state government medium term note programme.

The details of the proposed bond say issue price is N1, 000.00 per unit.

The proposed utilisation of the proceeds from the bond issuance as published in a prospectus by SEC shows that N5.4 billion will be used to complete its international airport; this represents 36.6 percent of the proceeds.

Also, N2.030 billion which represents 13.5 percent of the proceeds will be used to complete a 400 bed specialist hospital; catering for about 15,000 patients monthly.

While N6.338 billion will be used to refinance bank loans, this represents 42.3 percent of the total proceeds.

All these summed up totals N13.852 billion net proceeds from the offer after deducting N589.821 million which is costs and expenses of the issue representing 3.93 percent and an underwriting fee of N559.178 million representing 3.72 percent.

Lead Issuing House/Lead Book Runner is Planet Capital Limited and Joint Issuing House/Book Runner is Tiddo Securities Limited.