June 17, 2009 at 16:50 GMT
The Securities and Exchange Commission (SEC) has confirmed that Ogun State would be approaching the Nation’s Capital Market (NCM) to float a N50 billion Bond. This was contained in the official website of the Commission.
Otunba Gbenga Daniel, Executive Governor of the State, in a visit to the office of the Apex Capital Market Regulatory Agency in Abuja Nigeria, called on the Commission to support Ogun State in the issuance of a N50 billion bond to finance infrastructure of the State.
He affirmed that the bond will enable the state embark on industrial development.
Senator Udo Udoma, the Chairman of the Commission in his response also affirmed that the state’s decision to raise a bond in a bid to develop itself, is a welcome development and the Commission will give all the necessary assistance needed towards securing the requisite approvals.
The Commission’s Chairman, however, asserts that the approval of the SEC to the Bond is subject to Ogun State meeting Regulatory rules and regulation.
Senator Udoma reiterated the need for the three tiers of government to take advantage of the Capital Market to raise longer term funds to provide critical infrastructure needed for economic development.
This is coming on the heels of the visit of the Ogun State economic Committee; led by Governor Daniel to the Nigerian Stock Exchange (NSE) in Lagos Nigeria to interact with the Exchange Management, Capital Market Operators and the financial press on the proposed issuance of Bond of the State.
Though as at Monday June 15 2009, Otunba Daniel declined to comment on the amount the State Government is seeking through the proposed Bonds issuance; which SEC has confirmed is a N50 billion Bond issuance.
“The issue of what we want to do with the money and other details, is not what I can disclose here; we have submitted what we refer to as the general presentation, it is now the work of the Advisers; after they have received the approval from the Stock Exchange, they will now begin to advise us from their perspective; because at the end of it, we are talking of returns” Governor Daniel said.