Kwara redeems N17bn bond

The Kwara State Government has redeemed the N17bn bond obtained in 2009 for infrastructural development projects.

Governor of the state, Alhaji Abdulfatah Ahmed, who announced the redemption on Wednesday during a meeting with stakeholders in Ilorin, expressed satisfaction that the state had meet all its obligations under bond.

Abdulfatah said the N17bn was utilised for the Kwara State University, Malete; the International Aviation College; Harmony Advanced Diagnostic Centre; the Ilorin Township Stadium; Ilorin Water Reticulation Project (Phase One) as well road and electrification projects across the state.

He said information from the Nigerian Capital Market indicate that the market is excited and reinvigorated in their interest to subscribe to the Kwara state-proposed N23bn bond for the state infrastructural development.

He expressed confidence that when obtained, the new facility would also be judiciously utilised and serviced by the state government in line with established tradition.

Also speaking at the occasion, senior special assistant to the governor on investment promotion and strategy, Mr. Yomi Ogunshola, said over the life of the bond, the state government never defaulted in the payment of coupons to bond holders on June 15 and December 15 every year.

Ogunsola said the 14 per cent fixed rate five-year bond maintained an issue rating of A and issuer rating of Bbb issued by Agusto and Co rating – a pan-African rating agency. According to him, this signifies the superior quality credit profile of the Kwara state government.