Afrinvest Opens ₦25bn Edo State’s River Jamieson SPV Series 1 Bond
Afrinvest has said that ₦25 billion Edo State River Jamieson Special Purpose Vehicle series 1 bond issuance is now open.
Edo State is embarking on this capital raise to support infrastructural investments in order to enable it improve upon its already strong growth trajectory.
The bond which has 5 years tenor is priced at 100% par on its face value with N10 million as minimum subscription.
The firm informed that the book build for the River Jamieson SPV Limited ₦25 billion Fixed Rate Senior Guaranteed Series 1 Bond has commenced.
Explaining, Afrinvest said the offer opens today Monday, 7 December 2020 and is scheduled to close on Friday, 11 December 2020.
It however expected funding on Monday, 14 December 2020 with price guidance range around 8% – 9%.
The Bond is sponsored by the Edo State Government and guaranteed by an Irrevocable Standing Payment Order (ISPO) on the State’s revenue issued by the State’s Ministry of Finance.
The statement reads that proceeds from the ISPO will be remitted monthly into a Sinking Fund Account.
The fund was established and managed by appointed Bond Trustees which are duly registered with the Securities and Exchange Commission, for the purpose of meeting all obligations in accordance with the Trust Deed.
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 statement reads.
Read Also: Bonds as financial instrument: What you need to know about it
Edo Internally Generated Revenue grew at 11% cumulative average growth rate (CAGR) between 2016 and 2019 (averaging ₦24 Billion annually) with tax sources accounting for 67% of IGR.
Afrinvest Opens ₦25bn Edo State’s River Jamieson SPV Series 1 Bond by Ogochi Ndubuisi
