Oyo State is in the market to raise N5 billion while Kaduna State is raising the sum of N15 billion.
The bonds are being raised by the state governments to generate funds to execute developmental projects.
Sterling Bank’s Head of Structured Finance, Lanre Olalusi, who disclosed this to newsmen in Lagos, weekend, said that the choice of the bank may have been influenced by its track record in collections.
He disclosed that Sterling Bank used to collect visa fees for the British High Commission, French Embassy, Dubai and the United Arab Emirates (UAE).
Similarly, he said that the bank collects school fees in conjunction with Interswitch using the Paydirect platform.
Olalusi noted that the bank’s adherence to rules, transparency and professional service delivery in a timely manner also stood it out as a financial institution of choice for the programme.
“The antecedents of Sterling Bank in this business are unparalleled. This business is all about experience, deep understanding of the terrain, sincerity and trust. Sterling Bank has demonstrated all these qualities in similar transactions. The issuing houses also look out for banks with rich experience in the business and they are comfortable with Sterling Bank based on our past experience. For instance, Sterling Bank handled a similar responsibility for Wema Bank during its capital raising exercise and it was a huge success.”
While assuring that the bank would provide the necessary support to the issuing house, Olalusi said that the bank will continue to offer top notch service and robust platforms to ensure the success of the exercise.
He commended states for approaching the capital market to raise funds, adding that this will help to bridge the country’s infrastructural deficit and uplift the living standards of the populace.
“Such medium to long term financing are typically channelled towards infrastructure and developmental projects like construction of roads, rural electrification, and the execution of housing and water supply schemes which have a direct impact on living standards of the people,” he said.
