This Day (Lagos)

4 August 2014

Nigeria: Bond Issue - Oyo, Kaduna Appoint Sterling As Receiving Bank

Sterling Bank Plc at the weekend announced that it had been appointed by the governments of Oyo and Kaduna states as receiving bank for their bond issuance programme.

Oyo State is in the market to raise N5 billion, while Kaduna State is raising N15 billion. The bonds are being raised by the state governments to generate funds to execute developmental projects in their respective states.

A statement from Sterling Bank quoted its Head of Structured Finance, Mr. Lanre Olalusi to have said the choice of the bank may have been influenced by its track record in collections. For instance, he disclosed that Sterling Bank collects Visa fees for the British High Commission, French Embassy, Dubai and the United Arab Emirates (UAE).

Similarly, he said that the bank collects school fees in conjunction with Interswitch using the Paydirect platform.

Olalusi added: "The antecedents of Sterling Bank in this business are unparalleled. This business is all about experience, deep understanding of the terrain, sincerity and trust.

"Sterling Bank has demonstrated all these qualities in similar transactions. The issuing houses also look out for banks with rich experience in the business and they are comfortable with Sterling Bank based on our past experience. For instance, Sterling Bank handled a similar responsibility for Wema Bank during its capital raising exercise and it was a huge success."

While assuring the state governments that the bank would provide necessary support to the issuing house, Olalusi also said bank would continue to offer top notch service and robust platforms to ensure the success of the exercise.

He commended states for approaching the capital market to raise funds adding that this will help to bridge the country's infrastructural deficit and uplift the living standard of the populace.

"Such medium to long term financing are typically channeled towards infrastructure and developmental projects like construction of roads, rural electrification, and the execution of housing and water supply schemes which have a direct impact on living standard of the people," he said.

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