The Nigerian Stock Exchange (NSE) has admitted Kogi State’s N3 billion bond, making it a second tranche of the N20 billion bond to be raised by the state.
The NSE last week had admitted the N3 billion 17 per cent rate Infrastructure Development Bond (IDB), being the first state bond to be listed on the NSE this year.
Capital market analysts said that expectation of State governments coming to raise funds through the capital market remain high this year due to the decline revenue allocation to them from the federal government.
Last year, Kogi State Government had accessed a N5 billion first tranche of the N20 billion bond.
The N5 billion was the first tranche of the N20 billion IDB earlier approved for the state government.
Kogi State governor, Alhaji Idris Wada, said that his government had effectively used the N5 billion proceeds of the bond it raised from the capital market, saying that the bond is expected to be raised in four tranches. He said that the first tranche of the bond was oversubscribed to, adding that the funds had been disbursed to the various sectors for project execution.
He further said that the bond had given the state opportunity for infrastructure transformation and enhanced its internally generated revenue. Wada said that the state had embarked on numerous transformation activities due to the rate at which the bond was subscribed to. He revealed that the challenge of the state in its 23-year existence was how to develop its human capital and natural resources.
