Kaduna Restructures Repayment of ₦8.5b Bond

The holders of the ₦8.5 billion Kaduna State Government Bond last Friday approved the restructuring of its repayment terms for the benefit of both the investors and state government.

The bond has a coupon rate of 12.5% and would mature 2015. At its issuance, the repayment was structured in ways that the interest is paid to the bondholders semi-annually, in ten (10) separate installments and the principal will be repaid in one single bullet payment at the end of the tenor of the bond.

However, in the new structure, the state will repay a sum of ₦1, 500,362, 259 of the outstanding principal, out of the ₦6.8 billion being held in the sinking fund, afterwards the state will repay the outstanding principal and interest to the bondholders in an amortised semi-annual installments ending on August 31, 2015.

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