Bond Issuance: Ekiti Govt Completes Processes For Tranche II

January 1, 2014

L-R: Ekiti State Deputy Governor, Prof. Modupe Adelabu; Attorney General and Commissiner for Justice, Wale Fapohunda; Governor Kayode Fayemi; and Managing Director Greenwich Trust Ltd, Mr. Kayode Falowo, during the Completion Meeting for the Tranche II, of the Twenty Five Billion Naira (25, 000, 000, 000) Ekiti State Bond, in Lagos.

The Ekiti State Government has returned to the floor of the Nigerian Capital Market to raise the N5 Billion balance of the N25 Billion bond earlier issued in 2011 for the State to execute some developmental projects.

Speaking in Lagos at the completion meeting for the issuance of the N5 billion second tranche, on Tuesday, the State Governor, Dr Kayode Fayemi asserted that the bond will not plunge the State into unnecessary debt as some detractors in the State have opined.

Governor  Fayemi explained that contrary to insinuations by some critics, the N20 billion earlier sourced from the Capital Market was expended on regenerative projects which included   some key road projects especially two road dualisation projects with street lights, some legacy projects which are nearing completion: the new Government House, an international Civic Centre which will also house a museum, cinema and event centre; the State Pavilion which is aimed at ending the use of the Oluyemi Kayode Stadium for social events, and recently opened world class resort, Ikogosi warm spring Resorts.

The Governor added that other projects covered by the bond are the State College of Technical and Commercial Agriculture, resuscitation of Ire Burnt Bricks factory, and the ultramodern market in Ado Ekiti.

“The first tranche was used primarily for regenerative projects. I am sure everybody hears about Ikogosi but they didn’t know what Ikogosi was like years ago. It was full of reptiles and not a place to visit but today, in fact in the last one week, over 10,000  people were in Ikogosi. That’s one of the products we used the 20 billion for. If you go round Ekiti, the state is reputed to have some of the best roads and the widest intra state road networks that is motorable, of all states in and around us”, he said.

While stating that  Ekiti is not known as one of the states with limitless resources for huge developmental projects, Fayemi recalled that the pioneer civilian Governor of the State, Otunba Niyi Adebayo had in 2000 taken a bond of N4 Billion, N2.5 Billion of which he got before the expiration of his tenure and expended it on some road projects and the Ekiti House in Abuja.

He stated that the Ekiti House was built at N700 million but is now valued at N4.7 billion.

Fayemi while promising not to disappoint Ekiti people disclosed that his administration has already paid back N9.6 Billion out of the N 20 billion already got.

The documents for the N5 Billion bond was signed by all members of the State Executive Council, stockbrokers, issuing houses, the Security and Exchange commission, and the Nigerian Stock Exchange at the event attended by the Deputy Governor of the State, Prof. Modupe Adelabu and witnessed by Dr Adewale Omirin, the Speaker of the State House of Assembly, members of the executive council.

Last modified: January 1, 2014

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