Abuja — Ebonyi State Government has joined some other States of the federation that announced bond plans in recent months, with the recent approval of the Council of the Nigerian Stock Exchange (NSE) for the State to float N20 billion bond issue.

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

According to the State Commissioner for Finance, Barrister Timothy Odaah, who led the State's team to the meeting with the Council at the weekend, the bond is meant for various development projects in the State among which are road projects and 33 bridges to effectively link 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.

Odaah 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.

The commissioner for finance 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 utilised for the mutual benefit of the people of the State and investors.

"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.

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