Osun state commissioner for Finance, Budget and Economic Planning, Dr. Wale Bolorunduro has said that the present administration in the state has created opportunities for existing investors who are looking for high yields, by creating arrays of instruments and arrays of bonds in the state.
The commissioner, who made this known in an interview in Osogbo, also pointed out that the state government has succeeded in securing funds for infrastructural development of Osun at fixed returns.
According to him, “for the first time we are issuing a bond that is going to be asset backed. Asset backed in the sense that you will see that your funds will go into the creation of assets and not intangibles.
So, what it enables the investors to do is to diversify their portfolios, and in diversifying their portfolios they succeed in getting higher yield for their investment.”
“We have also succeeded in securing funds for infrastructural development of Osun at fixed returns. When we did this Sukuk bond, there was no way we could do it at 14.75 percent returns because banks were lending to one another at 25 or 30 percent.
During the period we were in the market raising this fund, interbank lending rates went as high as 40 percent so how can you get investors to invest at 14.75 percent? “
“Fixed returns and you know when you do fixed returns over time; the cost to the beneficiary comes down. There was no way we could raise that money without going the ways of Sukuk.
And so I am not surprised that not only are we beginning to have interest what we have done is that we have pioneered that instrument and have contributed to the infrastructural development of Nigeria.”
“We have done that and we are following our national leader, Asiwaju Bola Tinubu; who pioneered conventional bonds; the states going to the capital market to raise fund for infrastructural development.