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Rivers State House of Assembly approved N250 billion for state bond

By on July 30, 2011

Rivers State House of Assembly has approved N250 billion for the proposed state bond in order to facilitate infrastructural development in the state.

The first tranche of N100 billion bond is due in October, with a tenor of  three to five years. Leader of the Rivers State House of Assembly, Mr. Chidi, Loyd, said: “The House had endorsed the proposed bond in view of its importance and benefits to the people of the state.”

Director General of the SEC, Ms Arunma Oteh, said: “The main purpose of this outreach is to interact with the general public to understand their concerns so as to address them. Rivers State is a true example of leadership. As you considered going to the capital market, make sure that the fund is productive.”

Responding to questions, Mr. Chamberlain Peterside, Commissioner for Finance, Rivers State, said that the decision to approach the capital marketfor bond issue was in line with the international benchmark, which specifies that a state can only afford to carry 20 per cent of its GDP as debt.

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