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Stakeholders hail MorganCapital on Ekiti N5bn bond

By BusinessNews Staff on January 8, 2014

Commended MorganCapital Group, one of leading investment banking and securities dealing firms in the country for its crucial role in ensuring the success of the second tranche of the Ekiti State N25 billion bond raising programme.

The state had raised N20 billion in the first tranche in 2012, while the second tranche involving N5 billion was concluded on December 31, 2013.

Speaking at the completion board Meeting in Lagos, the Commissioner for Finance, Ekiti State, Mr. Dapo Kolawole said MorganCapital, which is a joint issuing house and book builder to the offer, and other parties made the offer a success within a very short period.

He specifically thanked MorganCapital for its unique roles in ensuring timely completion of the Offer and the level of subscription achieved.

Ekiti State raised the N5 billion from the capital market to finance five major projects under as the government seeks to complete major developmental projects that would impact on the socio-economic and urban-rural integration.

The net proceeds of the N5 billion bond issue, estimated at N4.80 billion, will be used to complete five major including the construction of the multi-purpose 10,000-capacity Ekiti-Kete pavilion, rehabilitation of Ire Burnt Bricks Limited, construction of River Ero bridge, construction of Ilawe-Igbaraodo-Iboji road and Ikole-Ijesa Isu-Iluomoba road.

Governor of Ekiti State, Dr. Kayode Fayemi, said the approval and success of the second tranche of the bond programme reflected the market’s confidence in the state as evidenced in the judicious use of the proceeds of the previous issuance.

According to him, the state had committed the proceeds of its first tranche to several laudable projects that continue to bear testimonies to efficient use of funds including the Ikogosi Warm Spring, school of agriculture and roads across the state.

[Vanguard]

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