BY PETER EGWUATU

Ekiti State Government  and parties to the issue have unanimously endorsed the N5 billion second tranche of the N25 billion state bond.
The N5 billion bond carries a 14.5 per cent coupon fixed rate that would be due for redemption in 2020.

The fund is meant to finance five major projects as the state government seeks to complete major development projects that would impact on the socio-economic and urban-rural integration.
Speaking at the completion board meeting, in Lagos, Governor of Ekiti State, Dr. Kayode Fayemi said the approval and success of the second tranche of the bond programme reflected the market’s confidence in the state as evidenced in the judicious use of the proceeds of the previous issuance.

According to him, the state had committed the proceeds of its first tranche to several laudable projects that continue to bear testimonies to efficient use of funds including the Ikogosi Warm Spring, school of agriculture and roads across the state.

He pointed out that all the new projects identified under the new bond issue would have immense positive impact on the development of the state, adding that all the projects would have been completed within the next one year.
He noted that while his administration was desirous of fast-tracking the pace of development through additional funds from the capital market, it is committed to efficient debt management as N9.2 billion had already been paid from the initial N20 billion issue.

“We believe that we owe a duty to the generation coming to really put these infrastructure in place,” Fayemi said.