Akwa Ibom Hints Of Upcoming $ 1 Billion Bond Issuance

Akwa Ibom State Governor Godswill  Akpabio has said the state would raise  over N150 billion from the capital market through bond with a viewing to financing the industrial development of the state in the coming year.

Akpabio, who disclosed this during the Capital Market Committee (CMC)  Maiden Retreat at the weekend in Uyo, Akwa Ibom State, noted that the state budget for 2012 would focus on industrial development.

He said: “I believe that we have laid the foundation for the growth in the last four years. Major flyovers, goods roads and electricity are in place. I believe we have to look at industrialization. We have brought a former minister of commerce as an adviser on industrialization and we are hoping to turn around the fortunes  of  moribund industries in the state.”

And to help in financing the industrialization process, Akpabio said that the state would be issuing a bond to raise additional funds.

“Akwa Ibom is quiet capable of repaying its loan. We already have a record of that in the capital market. We have borrowed before without default and I hope regulators will oblige us to come again.

However, that will be after a meeting between me and my financial advisers. The Securities and Exchange Commission (SEC) will advise us on how much we will raise taking congnisance of our internally generated revenue (IGR) and taking cognizance of ability to repay. For me, anything below N150 billion will not make sense,” he said.

He commended the SEC for its effort to transform the Nigerian capital market and thanked the commission for bringing the retreat to Akwa Ibom State to discuss issues pertaining to the downturn of the stock market and proffer solution for a rebound.

Meanwhile, in her speech, the Director -General of the SEC,  Ms. Arunma Oteh,  hailed the  administration of  Akpabio for the efforts to  transform the state within a short period of time.

“We are overwhelmed with the development of the state within a short period of time. We are amazed at what we saw at the airport, road among others. We are so delighted to have you and your team discuss with the chieftain of  the capital market. It is important that you raise money to further transform the state. No society can grow without long term capital,” she said.

Source: ThisDay