By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-Ebonyi state, southeast Nigeria has said it will use 51 percent of its N9.34 billion bond issuance to liquidate its existing loan of N4.34 billion with United Bank for Africa Plc (UBA).
This is contained in the prospectus of the state’s fixed rate bonds due 2021 available on the website of Securities and Exchange Commission (SEC).
The details of the proposed bond issuance say offer for subscription is via book building and price is N1, 000.00 per unit, while units of sale is minimum of 20,000 units and multiple of 10,000 thereafter.
Also, N2.878 billion which represents 31 percent of the proceeds will be used to part finance the International Market Abakiliki.
While, N1.374 billion which this represents 42.3 percent of the total proceeds will be used for electrification transmission at Ochudo secretariat and other accessories.
All these summed up totals N8.596 billion net proceeds from the offer after deducting costs and expenses of the issue and underwriting fee which was not estimated on the prospectus.
The prospectus affirms that as at December 31, 2013, the state’s total indebtedness amounted to N13.408 billion which represents the aggregate amount of various facilities with Nigerian financial institutions and foreign loans.
Lead Issuing House/Lead Book Runner is Planet Capital Limited and Co- Issuing Houses/Book Runners is Cowry Asset Management Limited and Skye Financial Services Limited.