The Edo State Government has announced plans to issue ₦25bn Series 1 Fixed Rate Senior Guaranteed Bond due 2025 for financing identified infrastructural projects through a Special Purpose Vehicle- River Jamieson SPV Limited.
The five-year fixed rate, semi-annual coupon bond is rated ‘A-’ by DataPro, ‘BBB-’ by Agusto at ₦1,000 per unit and 100% of par value will be due in 2025 and offered for subscription via a book build.
The principal redemption of the bond has a one-year moratorium, and is part of the state’s focus on strengthening its public institutions, facilitating private sector investments, improving infrastructure, and facilitating public education reform has continued to yield significant benefits.
The State is embarking on this capital raise to support infrastructural investments to enable it to improve upon its already strong growth trajectory.
Guaranteed by an Irrevocable Standing Payment Order (ISPO) on the state’s revenue issued by the State’s Ministry of Finance, the proceeds is to be remitted monthly into a Sinking Fund Account. The account will be established and managed by appointed Bond Trustees duly registered with the Securities and Exchange Commission, for the purpose of meeting all obligations in accordance with the Trust Deed.
The State’s Internally Generated Revenue (IGR) averaging ₦24bn annually, with tax sources accounting for 67%, averaging 11% CAGR between 2016 and 2019.