By Peter Egwuatu
The Governor of Ekiti State, Dr. Kayode Fayemi, weekend disclosed his administration’s commitment to transform the state with the floatation of N25 billion bond approved by the executive council.

Speaking at the Completion Board Meeting  of the Ekiti bond in Ado Ekiti, the governor expressed delight to see the Director- General of the Securities and Exchange Commission (SEC)| witness the Completion  Board Meeting for the Ekiti  bond

According to him, “For us in Ekiti State, we have no choice than to pursue our eight-point agenda. The bond will help the state develop agriculture, education and other infrastructure.

There is decay in the educational sector. We thank the SEC D-G for her quick response to witness the Completion Board Meeting and that has given confidence to the subscribers of the fund.”

Meanwhile, the Director-General of the Securities and Exchange Commission, Arunma Oteh has re-emphasised the importance of capital market fund in financing developmental projects even as Ekiti State roles out a N25 billion development bond programme to finance Ikogosi Tourist Centre and other  infrastructure.

Speaking at the Completion Board Meeting of the state as well, the Director-General said the market is a source of a veritable medium and long-term fund, good for financing developmental projects.

She also explained that use of capital market fund in project financing will make government and firms accountable and transparent. “The capital market provides avenue for everyone to access and assess books of funds seekers. It also makes institutions to respect good corporate governance principle.

The Director-General who was attending the Completion Board Meeting for the first time said: “I am fascinated with the performance of the state government and want to associate with it. ’Within a short time, you’ve set out good agenda which people of Ekiti State are associating with.”

The Commissioner for Finance, Ekiti State, Mr. Dapo Kolawole has disclosed that the recently approved N25 billion Ekiti bond has been oversubscribed by N0.3billion.

He also revealed that the seven-year tenor bond is in two tranches as the first tranche to be floated is N20 billion, while the second tranche will come later.

Kolawole explained that the N20 billion would be used to finance agriculture, infrastructure, education, health, amongst others.

According to him: “The bond has a coupon rate of 14.5 per cent, with A-rating by Agusto & Co. Interest and Redemption payments are to be funded directly and solely from  Ekiti State Government’s Federation Allocation Accounting Committee (EKSG’s FAAC) resources via the issuance of an  Irrevocable Standing Payment Order (ISPO)”

The Book Runners to the bond include: Greenwich Trust Limited, UBA Capital Limited, Skye Financial Services Limited, Fidelity Bank Plc, FBN Capital Limited, Capital Bancorp Limited, MorganCapital Securities Limited, Chapel Hill Advisory Partners Limited and BGL Plc.”

While giving details on how the proceeds from the bond would be used, Kolawle, said,” it will be used for expansion of Ado Water Works, that is, to improve the availability of water  to residents of the state and will gulp N335,500,000 ; Rehabilitation of Ero Dam-The main goals of the project are to prevent flooding, enhance  agricultural development and provision of potable water and will gulp N468,645,000;  Ekiti State School of Agriculture etc.

This will enhance skilled manpower in the agricultural sector of the State and will gulp N750,000 ; Road Construction- The State has identified for construction Eleven (11) roads which will either be dualized or expanded to improve social-economic activities and will gulp N9,678,184,623.

Others include: Construction of Lagos Liaison Office. This to to serve as a reference point for indigenes and potential investors seeking information on business opportunities and other programmes of the State Government will gulp N500,000,000; Construction of an Ultra Modern Market- This will serve as an access point for visitors and tourists wishing to purchase merchandise within the State.

And will gulp 2,750,000,000 ; Construction of an Ultra Modern Civic Centre- The project is intended to serve as a meeting point for Government, Residents, Tourists and the business community for public and private events and will gulp N1,000,000,000;

Enhancement of the Ikogosi Warm Springs & Resort Development    due to its popularity, the State intends to increase the tourism potentials of the State through the enhancement of the Resort and will gulp N1,500,000,000 ; Construction of Government House -The construction of the Government House intends to put to an end the temporary measures taken by past Civilian Administration in providing accommodation for the Executive Governor and will gulp N633,000,000; Construction of Governors’ Office -To act  as reference point for the citizens of the to engage the Governor and direct staff  in matters affecting the State and will gulp N400,000,000.”

He further stated that  he State intends to reduce its local debt burden by using part of the proceeds to repay bank facilities used to finance key projects in the State and this will gulp N1,354,970,377.33.

He further revealed that the state governor runs a transparent governance, saying, “participatory governance and accountability are being implemented by the  present administration , while motivating the citizens with ideas for better productivity; creating intellectual bank for policy formulation and implementation.”