Bond: Ekiti secures N20.3bn in first tranche

Following theirbelieve in thedevelop-ment agenda of the present Ekiti State Government, investors in the nation's capital market have bought a total of N20.3 billion of the first tranche bond offer of N20 billion from the state government.The bond purchase is said to be an endorsement, by investors, of the growth strategy and determination to make the state a commercial nerve center in the South West.It will be recalled that, as part of its developmental effort, the Ekiti State Government recently floated a N25 billion bond with a three year call option, but with N20 billion being its first tranche even as it seeks to tackle the issue of good governance; infrastructural development; modernised agriculture; Education & Human capital Development. The rest aindustrial development, tourism and women development.Briefing pressmen at the weekend on the success of the bond offer, the Commissioner for Finance and Budget Planning, Mr. Dipo Kolawole said the N20billion naira bond was issued to investors at 14.5 per cent, well below the last Federal Government bond auctioned at 16 per cent by the Debt Office and well below other state government's planned bond.He said the bond, secured via the investing public, would be utilised as 50 per cent development and 50 per cent as income generating, 'The fund is planned to be employed into potable water supply, good roads, agriculture, industrial development, health centres, tourism and hospitality among others.Ekiti State first accessed the bond market in the year 2000 with N2.5billion in the first instance and another in 2004. Part of the bond proceeds were invested in the construction of hospitality centres in Abuja and within the state.Speaking on the new bond issuance and the proceeds for the development of Ekiti State, the Finance Commissioner said the current government house of Governor Fayemi would be vacated and remodelled into an ultra modern hotel.Kolawole said the entire government house and the premises were currently valued at about N3trillon.He said the proceeds of the sale of the real estate and the land adjoining the government house would be invested in low cost housing and hospitality centres.
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