₦airaland Forum

Osun N22bn bond offer over-subscribed
TUESDAY, 18 DECEMBER 2012 08:34 REMI FEYISIPO

The Osun State government N22 billion bond offer at the capital market was over-subscribed by more than 100 percent.
The state went to the capital market to raise N22 billion but eventually realised N45.1 billion which translates to over N100 percent over-subscription.

This was revealed in Osogbo, the state capital, at the completion ceremony between the state government and the joint issuing houses for a N30 billion – 14.75 percent fixed rate development bond (tranche 1) due in 2019.

Wale Bolorunduro, commissioner for finance, said the N22 billion bond also received 78 entries, which represents another unparalleled record in the annals of capital market transactions.

Also, the state’s bond issue also changed completely the face of the capital market with over 60 percent of the subscription cornered by the Pension Fund Administrators (PFA). This scenario represents a departure from the past in which offerings were dominated and snapped by the banks that normally played crucial roles in bond issuance.

Government said that this development validates the level of confidence long-term fund investors placed on the state.

Speaking at the ceremony, Governor Rauf Aregbesola noted that the confidence did not just come but for the prudent management and financial engineering of his administration.

He described the transaction as a landmark bond, which has recorded a lot of firsts in Nigeria, saying that for the first time, the state was rated with bond rating of A and A-. Besides, since the creation of the state in 1991, it had no account but within 24 months of his administration, a standard accounting record was put in place, which Augusto rating agency few months ago rated A-.

All these successes, Aregbesola attributed to accountability, transparency and prudent financial system developed by his government, saying this would have been a mission impossible some years back.

He revealed that his administration met an insolvent state, which could not even meet its statutory obligations, saying his government had to source for a billion naira to meet these obligations.

“When we were to begin this, it was as if we were going on an impossible journey. And this is for a good reason: we met an insolvent state, a state that must pay more than N1 billion to meet its statutory obligations.

“The sheer impossibility of this was what informed the misread or the hallucination of the opposition in citing all sorts of figures. First, they said we are taking N200 billion. Later they said N150 billion. The last figure they quoted was N7.5 billion.

“The sheer impossibility of our efforts informed the hallucination. They just want to attack without having the correct information. I am happy that we are confounding them and we shall continue to confound them.

“This state, since its inception, has no account. And a government that is just 24 months old could develop an account that Augusto and Co. and the other rating agencies could rate A and A-, this is amazing. We must congratulate ourselves for such sudden flight that attracted the highest corporate and financial affection as we now get at the capital market.

“I want to tell our traducers, who would always want to see evil in us and what they could profit from it, better think twice that this collection of the best in Nigerian financial industry cannot be here for the fun of it”, Aregbesola said.

He noted that it is an uphill task taking a state from zero or sub-zero level to an enviable height where the capital market and Securities and Exchange Commission (SEC) could vouch for it.

Speaking on behalf of the joint issuing houses, Taiwo Okeowo said that it was in recognition of the successes recorded by Aregbesola’s administration that the offer was over-subscribed by more than 100 percent.

Osun to raise N30b bond to fund infrastructure projects
POSTED ON MONDAY, AUGUST 27TH, 2012


Photo : Aregbesola

By Rotimi Durojaiye Group Business Editor, Lagos

The government of Osun State at the weekend indicated its resolve to raise a N30 billion bond from the capital market to fund its infrastructure projects.

Commissioner for Finance, Economic Planning and Budget, Dr. Wale Bolorunduro, who disclosed this during an interaction with Business Editors at Osogbo, the state capital, said the process has reached regulatory level at the Securities and Exchange Commission (SEC).

According to him, the bond with seven years long term payment would be utilised to fund developmental projects like roads, housing, water and agriculture.

Bolorunduro listed the Gbogan-Osogbo, Osogbo-Iwo roads among those to be given priority by the government after accessing the bond.

He said all documentations on the credit had been perfected and that it would be ready within the next one month.

The Commissioner explained that approaching the capital market is one of the best methods of funding developmental projects, stressing that “it is suicidal to do developmental projects with commercial loans”.

He said the state government is looking for long concessionary loans from global financial institutions like the World Bank and China Exim Bank.

Bolorunduro said with the automation of the internally generated revenue (IGR) process by the Ogbeni Rauf Aregbesola’s administration, the state’s IGR has gone up from N300 million monthly when the government took over power to N600 million monthly.

He said the government has succeeded in blocking all leakages in the areas of agriculture produce and forestry.

According to the Finance Commissioner, the government of Osun State is looking beyond PAYE (Pay As You Earn) as the only source of revenue generation, saying that it has come up with modern and robust methods of making money.

He added because the government has been sensitising the general public on its developmental programmes, high net individuals now come around to pay their taxes.

Bolorunduro made it known that the government’s five-year revenue generation target for the state is to attain N21 billion per annum.

In his words, the plan in the medium term in 2015 is to be at par with Lagos, and that the state is eager to use physical strategy to improve its local economy.

He said because of the deliberate attempt of government to spend more money on capital projects, it earmarked 56 percent of this year’s budget for capital expenditure with the balance of 44 percent for recurrent expenditure.

Bolorunduro added that the strategy in future is to set aside 70 percent for capital expenditure and 30 percent for recurrent expenditure.

He said the government has achieved more than 60 percent performance on the 2012 budget.

Demdem: No doubt investors have full confidence in the administration of ogbeni Aregbe.

Standing5: if i must add, so far the man has done well, But it will be better if we still get to know what the N22Billy is going to do. At least the majority of it.

seunfly: This is a good question, if you are going to use our state to raise money we need to know what his using it for, we need to see his master plan, how he will spend it, what he will spend it on, how to pay it back and the benefit of it on the peaple So that we can monitor it and see the effect peaple and the state as a whole. Atleast Obama first term in office he highlighted what he wanted to use the chinesse loan for and peaple judged him base on the poor performance of that loan, now he is working to clear the mess.

Standing5: if i must add, so far the man has done well, But it will be better if we still get to know what the N22Billy is going to do. At least the majority of it.

Osun to raise N30bn from Capital Market
TUESDAY, 28 AUGUST 2012 00:00 REMI FEYISIPO


Osun State Government has revealed that it is set to raise a N30 billion bond from the capital market, in order to finance developmental projects.

Commissioner for Finance,Economic Planning and Budget,Wale Bolorunduro who disclosed this in Osogbo, during a chat with BusinessDay, said arrangements had reached an advanced stage and awaiting the approval of the Federal Ministry of Finance and the Securities and Exchange Commission (SEC) adding that “in the next one month ,we will hit the capital market.”

He also said the bond would be used for viable projects like roads, especially the road linking the state capital,Osogbo to Gbongan, observing that the road was bad and an embarrassment to the state.

Apart from this, he revealed that roads in major cities of the state would be done like the Osogbo /Iwo road, as well as other viable roads which are meant to boost commercial activities of the state.

Lamenting infrastructure decay in the state, Bolorunduro stated that the bond would be used for other developmental projects,especially dilapidated school buildings

Osun to raise N30bn from Capital MarketTUESDAY, 28 AUGUST 2012 00:00 REMI FEYISIPO Osun State Government has revealed that it is set to raise a N30 billion bond from the capital market, in order to finance developmental projects.Commissioner for Finance,Economic Planning and Budget,Wale Bolorunduro who disclosed this in Osogbo, during a chat with BusinessDay, said arrangements had reached an advanced stage and awaiting the approval of the Federal Ministry of Finance and the Securities and Exchange Commission (SEC) adding that “in the next one month ,we will hit the capital market.”He also said the bond would be used for viable projects like roads, especially the road linking the state capital,Osogbo to Gbongan, observing that the road was bad and an embarrassment to the state.Apart from this, he revealed that roads in major cities of the state would be done like the Osogbo /Iwo road, as well as other viable roads which are meant to boost commercial activities of the state.Lamenting infrastructure decay in the state, Bolorunduro stated that the bond would be used for other developmental projects,especially dilapidated school buildings

Gbawe: Contrast with Oyinlola who took a much condemned 18.38 billion loan at the twilight of his tenure.

aletheia: The difference is that between six and half a dozen.

‘We advised Oyinlola against N18.38bn loan’

SEPTEMBER 5, 2012 BY TUNDE ODESOLA

former Osun State governor, Olagunsoye Oyinlola
| credits: cfanet.org
Key officials in the administration of Prince Olagunsoye Oyinlola have said they advised the former governor against taking a loan of N18.38bn.

Testifying before a six-member panel of inquiry set up by Osun State Government on Tuesday, ex-Head of Service, Mr. Segun Akinwusi, described the loan as “messy and scandalous.”

In a memo submitted to the panel, Akinwusi said, “The loan was a sad page in the history of Osun State,” adding that the “loan is a messy affair in which some people were telling half truths or no truth at all.”

Akinwusi accused top government officials in the Oyinlola administration of performing ignoble roles in the loan, adding that projects for the loan were abandoned.

The former HoS, who retired a few weeks ago, said it was wrong to expend the loan on non-income yielding projects, adding that it was wrong of Oyinlola to take the loan at the twilight of his tenure.

“It was wrong to take the loan which cannot pay itself. You don’t take loan for social projects. There were contradictions by government agencies on the loan,” Akinwusi said.

Also, the Permanent Secretary, Ministry of Finance, Mr Abiodun Akintaro, said he advised the ex-governor against taking the loan.

Akintaro, however, said when the decision to take the loan was finally taken, he had to support it because it had become a collective decision.

Chairman, Osun State House of Assembly Appropriation Committee, Mr Femi Farounbi, said it was appropriate for the Oyinlola government to obtain the loan and spend it on building six stadiums across Osun.

But the Chairman of the panel, Prof Femi Odekunle, queried the appropriateness of constructing six stadiums when the state was facing economic challenges.

Odekunle also queried the rationale behind the construction and the abandonment of Radison Hotel, a project by the state government.

Farounbi said neither him nor his committee was aware of the terms of the loan

Osun’s N18.3bn controversial loan

NOVEMBER 18, 2012 BY TUNDE ODESOLA

Osun State Commissioner for Finance, Economic Planning and Budget, Dr. Wale Bolorunduro, and the Chairman of the state Peoples Democratic Party, Mr. Gani Olaoluwa, in these interviews with TUNDE ODESOLA speak on the inquiry into the N18.3bn loan obtained by the Olagunsoye Oyinlola’s administration

PDP should bury its heads in shame — Bolorunduro

The Professor Femi Odekunle-led panel of inquiry investigating the N18.38bn loan obtained by Oyinlola’s administration indicted the former governor for mismanagement. What’s your view on the report?

The panel is certainly made up of reputable technocrats distinguished by their commitment to the development of Osun State. Going by the manner the panel conducted itself, it was obvious that equity, fairness, transparency and accountability were the watchwords guiding its activities. However, I would not want to comment on the report because my comment will neither add nor reduce to it. The report of the panel was borne out of the submissions by those that appeared before it and the investigations conducted by members. The panel conducted its sittings openly and dispassionately, and I think this informed the decision by former Governor Olagunsoye Oyinlola to appear before it. The panel’s indictment of the former governor and other officials is only a warning to people in public offices to be wary of their conducts while in office because our actions and inactions would be accounted for at the end of the day.

But Oyinlola and Osun Peoples Democratic Party have insisted that the loan was taken in the interest of the masses.

The loan was irresponsible and misguided. It was capable of shutting down the economy of Osun State. In talking about the loan, we must be mindful that only the truth, facts and figures would suffice and make a meaning to the people of Osun. Why is it that the monthly repayment obligation of N619m on the facility was calculated by the United Bank for Africa based on the whole facility amount – irrespective of the undisbursed portion?

Our review and findings on the projects financed with the loan facility showed that the level of milestone reached by the contractors – as indicated by the various certificates of completion — was abysmally low when compared to the level of disbursement. In addition, the manner of management of the facility by the lender led to our decision to negotiate a fresh and well-structured N8.3 bn term loan from First Bank of Nigeria so as to take out the UBA loan. Mind you, the Oyinlola administration admitted that it had spent N10bn of the N18.3 bn loan. So, Osun was saddled with N8.3bn loan burden. And this was why we had to negotiate the remaining N8.3bn from UBA to First Bank. Pray, why take such a gigantic loan a few months to the end of your tenure? There’s something sinister about the hurry in the obtainment of the loan. First Bank loan has a moratorium of one year with a 60-month tenor while the UBA loan is without a moratorium and has 36-month tenor. While the First Bank loan has an annual interest rate of 10 per cent with 0.75 per cent annual management fee, the UBA loan has an annual interest rate of 13 per cent with 1 per cent annual management fee.

Do you mean that the loan has no benefit whatsoever for the state?

Exactly! It shows the PDP is made up of cultural reductionists and how else can he explain the fact that he released N430m public funds to build Radisson Hotel without following due process? He signed off the fund and broke all the financial regulations. He blamed the court for sacking him and that he would have gone after the company. The question is that how can he recover the funds that was disbursed without transaction trail or legal agreement duly vetted by the Ministry of Justice? The same financial recklessness was displayed in the Free Trade Zone transaction, in which Osun lost N1.5bn. That is not how to accept responsibility! It is alien to our culture and PDP members should just bury their heads in shame. It would shock you that the Oyinlola administration negated the purpose for which the loan was taken.

What’s your position on the tenor of the loan which has generated controversy?

Given the lean resources of Osun, it is unreasonable to negotiate such a substantial loan with a 36-month tenor. How can a state survive by using more than 32 per cent of its revenue for servicing a loan at a time when its personnel and overhead costs were already over 100 per cent of its statutory revenue? The allegation that the Rauf Aregbesola administration took N25bn from First Bank is fallacious. The referenced N25bn facility being claimed as loan by the PDP is a credit line and only the sum of N8.3bn used to pay down the UBA facility was drawn to date. The state’s obligation is limited only to N8.3bn. Knowledge of financial and treasury management shows that a credit line is not a loan until it has been drawn and this government has not drawn from the facility. The records are there for everyone to see. Our strategy of restructuring the referenced term loan is first, to convert it to a long term obligation that it should be, and then take it out by sourcing a cheaper debt instrument (developmental bond) from the capital market. Osun does not owe any financial institution.

Gbawe: Oyinlola took a relatively expensive loan to build six Stadiums as if Osun was planning to host the Olympics. Go figure. I don't know how you can compare the loan granted to Oyinlola, with stringent conditions, to the longer term bond utilisation under discussion here.

http://www.punchng.com/news/we-advised-oyinlola-against-n18-38bn-loan/

Demdem: No doubt investors have full confidence in the administration of ogbeni Aregbe.

aletheia: 1. My point is this: I don't trust any politician of whatever hue (especially our state governors who have a penchant for profligate financial recklessness) that take out loans and further push their states into indebtedness. Depending on your viewpoint, any loan can be justified. Aren't there other means through which Osun could have raised the necessary funds such as increasing IGR, plugging loopholes for waste and corruption, a public-private partnership etc.

2. When it comes to issues such as these, my own opinion is that the people's voice should be heard. Did the people of Osun agree to this? Will they have to pay for this in future through increased taxation &co?

3. It is possible that the current governor of Osun may prudently utilize the funds but only time will tell.

4. Trust no politician.

He also said the bond would be used for viable projects like roads, especially the road linking the state capital,Osogbo to Gbongan, observing that the road was bad and an embarrassment to the state.

Apart from this, he revealed that roads in major cities of the state would be done like the Osogbo /Iwo road, as well as other viable roads which are meant to boost commercial activities of the state.

anonimi: Your question is partly answered by the quote below from one of Gbawe's justification posts:



* Now does anyone know how many kilometres for these TWO roads?
* Are they to be constructed afresh from forests?
* Or are they to be renovated/rehabilitated/renovated?
* N22b just for rural state roads that already exist
* Aregberascal must have learnt something from the "excellent" Lagos governor who handed over Lekki government road to his godfather, Tinubu to collect fraudulent tools and used mobile policement to quell activists who protested!!!

[size=14pt]Association of Conmen in Nigeria (ACN)[/size]

Again, what is the difference between six and half a dozen

Commissioner for Finance, Economic Planning and Budget, Dr. Wale Bolorunduro, who disclosed this during an interaction with Business Editors at Osogbo, the state capital, said the process has reached regulatory level at the Securities and Exchange Commission (SEC).

According to him, the bond with seven years long term payment would be utilised to fund developmental projects like roads, housing, water and agriculture.

Bolorunduro listed the Gbogan-Osogbo, Osogbo-Iwo roads among those to be given priority by the government after accessing the bond.

emiye: Do you actually think you are making sense? How did you conclude that 22billion is meant for two roads?

That you are physically lazy to read or intellectually lazy to comprehend does not mean you expose yourself openly.

If you will criticize, make it constructive, that way it will elevates the discussion, not the rubbishh you have done

HNosegbe: The bolded is the crux of the matter. I really don't understand how and why a government should take a loan to construct a road when the means for recovering the funds. Basic finance tells us that for borrowing to be feasible for any project, the expected returns from the project MUST surpass the cost of funds. Now for a loan with 14.75 percent coupon rate, HOW EXACTLY will the returns from the roads constructed and dilapidated buildings rebuilt EXCEED this rate? How will the state prevent a situation where debt servicing begins to eat up a major chunk of the annual budget, as is the case with the FG?

I'm not convinced.

Purpose of municipal bonds

Municipal bonds are securities that are issued for the purpose of financing the infrastructure needs of the issuing municipality. These needs vary greatly but can include schools, streets and highways, bridges, hospitals, public housing, sewer and water systems, power utilities, and various public projects.



Municipal bond issuers
Municipal bonds are issued by states, cities, and counties, (the municipal issuer) to raise funds. The methods and traces of issuing debt are governed by an extensive system of laws and regulations, which vary by state.

Gbawe: Interesting news. Certainly, 100% State bond over-subscription is[b] commendable[/b]. Aregbesola should simply remain focused and deliver on the development plans enunciated.


http://www.businessdayonline.com/NG/index.php/markets/bond-market/49175-osun-n22bn-bond-offer-over-subscribed

Standing5: if i must add, so far the man has done well, But it will be better if we still get to know what the N22Billy is going to do. At least the majority of it.

Osun signs N17.8b Osogbo-Kwara Boundary Road dualisation contract

Date: 2012-07-28

Osun State government has signed a N17.8 billion contract agreement with SAMMYA Construction Company Limited for the dualisation of the 45 kilometers Osogbo-Ikirun- Kwara State Boundary Road.

A statement from the state government made available to Saturday Mirror, says that the dualisation had been segmented into three of Osogbo-Dagbolu (International Market) to Alamisi Market in Ikirun (9.52 kilometers); Osogbo (Old-garage) to Ikirun junction road (20.5 kilometers) and Ikirun-IlaOdo- Kwara State Boundary road (16.5 kilometers). In signing the agreement on Thursday, the Special Adviser to the Governor on Works and Transport, Engineer Oladepo Amuda, said that, in line with the agreement, the project would be completed within 24 months of which the work had already commenced.

He said that the project was not the usual direct contract award, but a contractor- financing transaction, which came out of the confidence of the contractor in the administration of Governor Rauf Aregbesola, saying that the money for the contract would be repaid across 36 months after the completion of the project.

A development financial institution, The Infrastructure Bank Plc (TIB) which is the Transaction Advisor, Fund Arranger and Financier of the project, is working in conjunction with the construction company and other stakeholders to fund the project.

He further said: The road will link the market hub at Dagbolu with a spur from the major road to the market and from there to Alamisi Market in Ikirun. The major one will go from Old Garage and directly to Ikirun and to the Kwara State boundary
http://m.ilorin.info/fullnews.php?id=979

Osun set to inaugurate tourist-friendly park. Wednesday, 05 December 2012
TOURISTS and travellers passing through Osun State using the Ibadan–Ife Expressway will soon have a place to unwind, relax, bail out stress and travel fatigue as the Osun State Government is gearing up efforts at ensuring the completion of a multi–million naira tourists’ - friendly park before the year ends.

The park which is located at Gbogan junction, along the Ibadan–Ife Expressway is the initiative of Governor Rauf Aregbesola who believed that such a recreation centre is not only fit for the people of his state at this specific location, but a necessary incentive for tourists and travellers passing through the state to other parts of the country.

The park which is about 80 per cent completed is on three acres of land, giving enough room for the facilities in consideration of expected patrons and buyers.

The facilities therein are targeted at all for the purpose of recreation, fun, relaxation, sight–seeing, leisure and hospitality.

A tour of the park conducted by Tribune Tourism Magazine recently revealed alluring fountain to be erected on an Elephant’ effigy, public toilets, a multi–purpose event centre with function rooms, 12-bedroom hotel, police post, restaurant and bar, canteen, mechanic workshop, car wash bay, children recreation centre, love garden and parking lots tailored at giving the travelling masses a place to relax while on transit.

Though the park is under construction, the community has started benefitting from the few inquisitive travellers who stop at the junction to have a look at what is being constructed.

Madam Taiwo Adelani, middle-aged woman who hawks oranges at the junction has this to say: “I don’t really understand what Governor Aregbesola is doing there. But it seems it is a good project as it has compelled many people to stop to see what is in there. These people also buy one or two things from us. I am sure at completion, more people will come and that is more patronage for us.”

The park which has started to boost commerce at this junction, is also adding value to the environment through its unique design and aesthetics which parades the coat of arms of the state which proudly announces IPINLE OMOLUABI.
http://www.tribune.com.ng/news2013/index.php/en/tourism/item/502-osun-set-to-inaugurate-tourist-friendly-park

anonimi: For someone who is keen to celebrate mediocre awards to thieving governors:

https://www.nairaland.com/1085017/ogun-state-governor-amosun-emerges

https://www.nairaland.com/1065854/governors-forum-greets-acn-governor#12430410


I guess I should know where you are coming from and what you are all about.
Enjoy the crumbs from your paymasters while the [size=14pt]Yoruba people get r.aped by these pseudo-progressive "saviours".[/size]

BTW, how much did Awolowo raise from the capital market or borrow from banks for the groundbreaking achievements during his administration over the entire Western region
How much did the UPN governors borrow as debt to saddle future, unborn generations in the Southwest & old Bendel state to deliver on the four cardinal programmes of their party that included

* FREE education with books
* FREE primary health


[size=15pt]Association of Conmen in Nigeria (ACN)[/size]

What is the difference between six and half a dozen

aribisala0: Has anyone noticed the eye watering 14.75 % interest ?? This I believe is higher than what the FG gives for its 90 day paper but again the rates are in the same ball park and one hopes this is long term paper.. Anyone who has listened to the news recently will know that countries like Greece,Portugal Spain etc are in trouble financially.

Look at this link
http://www.tradingeconomics.com/greece/government-bond-yield

Greece is paying well under this 14.75% for 10 year paper.
So back to the government must borrow argument;

Must they borrow at any cost?

when does it become unreasonable to borrow?

These are questions well meaning citizenry must ask. In fact with government borrowing at this rate is there any need to work or do business. Where else can you get these kinds of returns? Caveat emptor! The reason why the yield is so high is because the market perceives the risk to be so high. i.e

The risk that Osun state may not pay up.This risk has a price= 14.75%.


It is massaging information to put it mildly ,when a government is borrowing at almost 15% and tells us its"BONDS ARE OVERSUBSCRIBED" Come on we are not that stupid! That is for the creditor a pay back of 5 years (compounded) for original investment received AS INTEREST and the PRINCIPAL STILL UNPAID.

Our Professor BAWWY would have us believe this is good for Osun State. Well we hope they don't use the money to send their wives to Syria to learn about democracy!

Paul John: Aregbes management skill is commendable.



I'm presently in Osun. Ever since the creation of the state, I've never seen the type of massive project the present administration is embarking on. The only past governor who did something similar but far lesser than what Aregbe is doing was Adebisi Akande.

check this out to know what the N22billion is going to be spent on.

‘Low IGR compels states to go for bond issuance’
FRIDAY, 23 NOVEMBER 2012 00:00 REMI FEYISIPO
The Osun State government has said that the quantum of developmental agenda designed to transform the state and other South West states calls for a more detailed and strategic design, both in conceptualisation and the manner such projects are to be actualised financially.

Speaking with BusinessDay in Osogbo, the state capital, Wale Bolorunduro, the state’s commissioner for finance, said the “IGR is a case of “chicken or egg,” you must catalyse the economy before you can aggressively pursue IGR. Our shared passion for monumental capital projects is a strategy aimed at boosting economic activities in the region.”

According to him, this is so given the peculiarly limited monthly allocation from the Federation Account and the currently low Internally Generated Revenue (IGR) in the states, with the exception of Lagos.

Sustainable economic activities at micro level, he pointed out, is inevitable for enhancement of the states’ internal revenue, thus meaningful capital projects such as road and commercial infrastructure are proactive strategies to prevent our states from programmed extinction.

[b]He said the rationales for choice of bond, as a preferred source of financing for government were its relative cheapness and longer tenor.

Lagos, Osun, Ogun and Oyo states are presently approaching the capital market for bonds of different amounts and the development has been criticised, especially by the opposition parties and some people in their states.

Reacting further to this, the Osun State commissioner for finance said the uncertainties of Nigerian money market and the implications of unpredictable fluctuations in money market rates on bank loan interest endear professional managers of states’ treasuries to developmental bond, whose coupon remains unchanged throughout an agreed tenor or period, adding that the yield on the fund comes to near single digit.

“Ironically, the rigours involved in getting bond issuance programme approved, particularly in the area of documentation and scrutiny from capital market regulatory authorities, is enough test of discipline, transparency, initiatives and vigour, the Investment and Securities Act of Nigeria 2007 can be consulted for details of the requirements and documentation for bond.[/b]

Gbawe: My guy, Osun folks know what they know. Aregbesola and his team should simply remain focused and shun detractors. It is the same with Nairaland. The plan to use bonds to derive funds is not new and is not even what matters ultimately. The funds required has been raised. As the State commissioner of Finance observes at the end, those who seek certain information should approach the right authority.


http://www.businessdayonline.com/NG/index.php/markets/companies-and-market/47936-low-igr-compels-states-to-go-for-bond-issuance