THE Ebonyi State Government has said it will utilise the N20 billion bond approved to it by the Council of the Nigerian Stock Exchange, NSE, on the constructions of 33 bridge projects and other developmental infrastructure across the state.

The NSE recently approved the N20 billion bond issue of the Ebonyi State Government, making the South-Eastern state the latest of several states to announce bond plans in recent months.

The bond, to be issued in two tranches of N16.5 billion and N3.5 billion, is for tenure of five years with a coupon rate of 13 per cent.

Ebonyi State Commissioner for Finance, Barrister Timothy Odaah, who led the state team to the meeting, said the bond was meant for various development projects in the State among which were road projects and 33 bridges of unity effectively linking all parts of the state, the state regional water schemes, the Ebonyi state rice mill project, Ebonyi state international market, repayment of some short term bank facilities and various other projects.

He said, since some of the projects have already been initiated, the Bond Issue is intended to ensure their speedy conclusion to the benefit of the entire citizens of Ebonyi State.

He noted that the state had been “very meticulous” and thorough in packaging the bond to ensure that the projects for which the Bond proceeds were meant for are very viable and that investors’ funds would be well protected and utilized for the mutual benefit of the people of the State and the investors.

According to him, “after a detailed analysis of the situation, we by this medium urge the Securities and Exchange Commission, SEC, to accelerate the approval of the bond in view of its viability as shown by the ‘A’ rating by Agusto and Company.

He added, it is a known fact that repayment will not be an issue as it will come from the state’s statutory allocation through an irrevocable standing payment order (ISPO) and accumulated in a sinking fund to be managed by trustees to the bond issue.

“We commend the Chief Martin Elechi’s administration’s bold step to raise the bond to finance infrastructure development. It is heart-warming to learn that the state would use the proceeds to repay existing bank loans, build an international market, water project, roads, bridges, an international hotel and a rice-processing factory.“People sometimes perceive bonds as stodgy and old-fashioned.

But that is not the case with the Ebonyi N20 billion Bond. We had actually wondered how Governor Elechi intended to complete the massive infrastructural projects like the 33 unity bridges; his administration has embarked on. So, we view the bond option as the only way out if the projects are to be fully executed.

The truth is that institutions use bonds as immunization.“The multiplier effect is that there will be good roads for evacuation of agricultural produce; particularly, rice for the rice processing industry as well as job and wealth creation.

“It is our considered opinion that the bond will be judiciously used for its original purpose; given the exemplary fiscal discipline already exhibited by the Chief Elechi Administration in the past three years”, he said.