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The
Edo State Government has secured approval of the Securities and
Exchange Commission (SEC) to raise N25 billion from the capital market
for infrastructure development. The bond which is at N1, 000 par value
with a fixed rate of 14 per cent will be due in the year 2017. With
this approval, the state will have access to long term capital for
developmental purposes.

This is the second
time the state is raising funds from the capital market, having raised
N1 billion in the First Edo State Floating Rate Revenue Bond 2002/2006
for the Iyekogba Housing Estate project.

The completion
board meeting held at the Edo State government house on Friday was
presided over by the deputy governor Pius Egberanmwen Odubu who
represented the state governor, Adams Oshiomhole. Parties to the issue
– the Edo State Executive Council, Afrinvest West Africa Limited as the
issuing house, FBN Capital, Skye Financial Services Limited, Stanbic
IBTC Bank Plc, FCMB Capital and UBA Capital – agreed that all the
requirements have been met by the state government to secure the Bond.

This offer for
subscription of fixed rate infrastructural development bond is
restricted to qualified institutional investors and high networth
individuals as defined by rule 78(c)(2) of SEC.

The State
Attorney-General and Commissioner for Justice, Osagie Obayuwana, said
the state was assessed by the relevant institutions and given a clean
bill of health to go ahead.

“The issuing
houses, joint brokers, solicitors, Banks and advisers collaborated in
assessing the suit that are against the state and the extent to which
the state was indebted to right now and at the end they found the state
worthy enough to issue this bond,” he said.

The Commissioner
for Finance, John Inegbedion disclosed that the best way to finance
long term projects is through bond and that the state government
complied with the requirements of all the necessary institutions
amongst other factors to get approval.

“It was initially intended to raise N30 billion but the Securities and Exchange Commission only approved N25 billion,” he said.