Gombe State with N3.7b IGR borrows N5billion @16% for 7 years

Gombe state has concluded its bond offering raising 5 billion naira ($25 million) on a a 7-year bond with a 16 percent yield to help fund new roads and schools, an official said on Friday.

The bond, is said to have a maturity date of 2022 and is the first tranche of a N10 billion  debt issuance programme. They also claimed the offer was 100% successful with a total of three applications for 5 million units of 1,000 naira each received from investors.

The state had in 2012 issued a 20 billion naira 7-year bond maturing in 2019 with a yield of 15.5 percent. Available data shows Gombe state generated about  N3,717,188,863.22 in IGR as at 2012.