Kogi State Government Restructures Sub-National Bonds

Kogi State Government says it has restructured its sub-national bonds to extend the maturity date of the two bonds by three years.

The government restructured its Kogi State N5 billion Series I 15 percent Fixed Rate Bond and N3 billion Series II 17 percent Fixed Rate Bond under the state’s N20 billion debt issuance programme.

The N5 billion bond, which was expected to mature in December 2020, has been extended till December 2023 while the N3 billion bond, which was earlier scheduled with maturity in March 2022, will now mature in March 2025.

Market sources said the bonds were restructured as part of financial management strategy of the state government.

Nigerian governments and companies raised more than N2.2 trillion in new capital from the capital market in 2020 as governments and companies sought out financial buffers against global economic disruptions and adverse impact of COVID-19 pandemic.

Official data showed that governments and companies raised more than N2.2 trillion in 2020, the new capital were sourced through both debts and equities.

Regulatory report at the Nigerian Stock Exchange (NSE) indicated that the capital market provided critical funding in debts and equities to governments and companies, with sustained activities all through the lockdowns and disruptions occasioned by COVID-19 pandemic and global economic uncertainties.

A breakdown of the fund-raising entities showed five broad categories- Federal Government, state governments, quoted companies, fund management finds and special purpose vehicles (SPVs).

Nation/Hauwa Abu