Date Published: 08/26/11

Delta seeks N100 Billion Bond from Stock Exchange for Infrastructure

Delta State Government has sought for N100 billion bond from the Nigeria Stock Exchange (NSE) to enable it accelerate Infrastructural development in the State.

The State Governor, Dr. Emmanuel Uduaghan who announced this when the Chief Executive Officer of the Exchange, Mr Oscar Onyema paid him a courtesy visit in Asaba said the bond was in two tranches and the transaction on the first N50 billion tranche was already on.

He commended the Nigeria Stock Exchange (NSE) for its support so far in fast-tracking the transaction and promised to use the bond to actualize the infrastructural dream of the State Government.

Governor Uduaghan explained that the State Government decided to seek for bond from the Nigeria Stock Exchange (NES) because of its low interest rate saying “we decided to seek for bond since to get such loan from the bank attracts higher interest rate”.

Explaining further, he said the strategic plan of the State was to ensure there was economic benefit in all developmental projects embarked upon by the Government.

The Governor said that businessmen in the State would be encouraged by the state Government to patronize the Nigeria Stock Exchange (NSE) when sourcing for funds to invest in the State because the business community would find it difficult to borrow from the banks at high interest rate.

“We are encouraging businessmen investing in the State to patronize you (NSE) don’t look at the State as a rich one, make your interest rate to be very low so that we can patronize you the more.”

In a brief address, the Chief Executive Officer of the Nigeria Stock Exchange, Mr. Oscar Onyema stated that the Exchange was ready to give the necessary support to Delta State Government to enable it get the N100 billion bond.

Explaining that it would be issued in two tranches, the first tranche would be N50 billion while the second phase of N50 billion would come up later.

“The Nigeria Stock Exchange is ready to facilitate the transaction to ensure that Delta State Government gets this bond soonest in order to enable the government fast-track development in the State.”