Port Harcourt — Governor Rotimi Amaechi of Rivers State has said his administration plans to issue N250 billion bond at the capital market to fund major developmental projects.
A statement by spokesman for the Rivers State governor, Mr. David Iyofor, said the bond would be tied to funding of specific projects, such as the Greater Port Harcourt City, the Port Harcourt Monorail project, the new Rivers State University of Science and Technology Phase 1.
It would also fund Monte@Rivers (an entertainment complex), the Port Harcourt Ring Road(that would connect the old city and Greater Port Harcourt) and a new M-10 Highway (a beltway that would link the Port Harcourt International Airport to the Onne Sea port).
Iyofor explained that “such gigantic projects would need immediate and massive funds injection to complete them. Hence, Rivers State plans to approach the capital market in October, 2011 to raise these funds.
“Already the state House of Assembly has given the nod for the governor to go ahead and obtain the bond as such projects cannot be accomplished by sheer reliance on federal allocation and internally generated revenue that comes in trickles.”
Giving details, Commissioner for Finance, Dr. Chamberlain Peterside said:“These long term capital projects that are capable of catalyzing the industrialisation and transformation of Rivers State require massive financial investment that can only be obtained from the capital market.
“The proposed size of the first tranche of the bond will be about N100 billion with five years tenure, whereas the total bond programme of N250 billion is envisaged over the next several months.”
Peterside said.
According to him, “Whilst energy prices remain relatively high on the world market in an atmosphere of somewhat low to moderate interest rate, Rivers State would benefit from a bond issue at this stage through leveraging its high income potential and favourable credit rating, coupled with a debt portfolio that is currently low at less than 30 billion naira.”
“The economic indicators of the state, including annual Gross Domestic Product of about 30 trillion naira compared to its debt stock are positive attributes that Rivers State can ride on to raise additional funds to finance its long term development agenda and fast track social and economic growth.
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Rivers plans N250bn bond to fund developmental projects
Rivers plans N250bn bond to fund developmental projects
NigerianEye
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Monday, August 01, 2011
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