SUPPLEMENTARY PROSPECTUS DATED JUNE 2009 ing in pages [18 in pages ing IMO STATE GOVERNMENT OF NIGERIA OFFER FOR SUBSCRIPTION OF ors, see “risk factors” commenc N18,500,000,000 SERIES 1: 15.5% FIXED RATE BONDS DUE 2016 Issue Price: N1.00 per unit please consult your Banker, Stockbroker, Accountant, Solicitor or any Payable in full on Application Application list Opens: [29 June 2009] Application list Closes: [30 June 2009] considered by prospectiveInvest This Supplementary Prospectus constitutes an updating supplementary prospectus for the purpose of Rule 40(C) of the Rules and Regulation of the Securities & Exchange Commission (“the Commission” or SEC) and is prepared in connection with the N18,500,000,000 Medium Term Note Programme established by Imo State Government of Nigeria (“the Issuer”). This Supplementary Prospectus is supplemental to, and should be read in conjunction with, the Shelf Prospectus dated June 2009 and any other supplements to the Shelf Prospectus to be issued by the Issuer. Terms defined in the Shelf Prospectus have the same meaning when used in this Supplementary Prospectus. This Supplementary Prospectus and the Securities, which it offers have been cleared and registered by the SEC and a copy of the Supplementary Prospectus has been filed with the Corporate Affairs Commission. It is a civil wrong and a criminal offence under the Investments and Securities Act 2007 (“the Act”) to issue a prospectus, which contains false or misleading information. Clearance and registration of this Supplementary Prospectus and the Securities, which it offers do not relieve the parties from any liability arising under the Act for false and misleading statements contained herein or for any omission of a material fact. The registration of the Shelf Prospectus and this Supplementary Prospectus shall not be taken to indicate that the Commission endorses or recommends the Securities or assumes responsibility for the correctness of any statements made or opinions or reports expressed in the Shelf Prospectus or this Supplementary Prospectus. No Securities will be allotted or issued on the basis of the Shelf Prospectus read together with this Supplementary Prospectus later than two years after the date of the issue of the Shelf Prospectus This Supplementary Prospectus has been issued in compliance with Section 53 of the Act, the Rules and Regulations of the Commission and the listing requirements of The Nigerian Stock Exchange (“the Exchange”) and contains particulars in compliance with the requirements of the Commission for the purpose of giving information with regard to the Securities being issued hereunder (the “Series 1 Bonds” or “Bonds”). Application has been made to the Council of the Exchange for the admission of the For information concerning certain risk factors which should be . Bonds to the Daily Official List of the Exchange. The Bonds now being issued will upon admission to the Daily Official List qualify as a security in which Trustees may invest under the Trustee Investments Act (Cap T22) Laws of the Federation of Nigeria, 2004. The Bonds also qualify as a Government Security under Section 20(1)(g) of the Personal Income Tax Act, Cap P8, LFN, 2004 as well as Section(19)(2) of the Companies Income Tax Act, Cap C21, LFN, 2004. The Issuer accepts full responsibility for the accuracy of the information contained in this Supplementary Prospectus. The Issuer declares that having taken reasonable care to ensure that such is the case, the information contained in this Supplementary Prospectus is, to the best of its knowledge, in accordance with the facts and does not omit anything likely to affect the import of such information and that save as disclosed herein, no other significant new factor, material mistake or inaccuracy relating to the information included in the Shelf Prospectus has arisen or has been noted, as the case may be, since the publication of the Shelf Prospectus. Further, the material facts contained herein are true and accurate in all material respects and the Issuer confirms that, having made all reasonable enquiries, to the best of its knowledge and belief, there are no material facts, the omission of which would make any statement contained herein misleading or untrue. LEAD ISSUING HOUSE UBA CAPITAL (AFRICA) LIMITED RC 444999 CO- ISSUING HOUSES to 20] This document is important and should be read carefully. If you are in any doubt about its contents or the action to be taken, taken, to be action or the contents its about doubt any are in If you carefully. read be should and important is document This immediately for guidance adviser professional other BGL SECURITIES LIMITED FUTUREVIEW FINANCIAL STANBIC IBTC BANK PLC RC 223042 SERVICES LIMITED RC 125097 RC 217005 CONTENTS CONTENTS .................................................................................................................................................................... 2 ABRIDGED TIMETABLE.............................................................................................................................................. 3 PARTIES TO THE OFFER............................................................................................................................................ 4 REPRESENTATIVES OF IMO STATE EXECUTIVE COUNCIL.................................................................................. 6 DEFINITIONS................................................................................................................................................................ 7 THE OFFER................................................................................................................................................................... 8 SUMMARY OF THE OFFER .......................................................................................................................................... 9 SUMMARISED CONDITIONS OF ISSUE.................................................................................................................... 12 RISK FACTORS AND MITIGATING FACTORS FOR THE PROGRAMME.............................................................. 18 .STATUTORY AND GENERAL INFORMATION ...................................................................................................... 21 STATUTORY AND GENERAL INFORMATION ....................................................................................................... 22 Indebtedness...............................................................................................................................................................22 Claims and Litigation.................................................................................................................................................22 Costs and Expenses...................................................................................................................................................22 Material Contracts......................................................................................................................................................22 Bond Rating................................................................................................................................................................22 Relationship between the Issuer and its Advisers .................................................................................................22 Consents......................................................................................................................................................................22 Documents Available for Inspection ......................................................................................................................23 INFORMATION ON IMO STATE............................................................................................................................... 24 USE OF PROCEEDS .................................................................................................................................................... 32 FIVE YEAR FINANCIAL INFORMATION................................................................................................................. 36 Reporting Accountant’s Report...............................................................................................................................36 FINANCIAL FORECAST.............................................................................................................................................. 56 Letter from the Reporting Accountants .................................................................................................................56 Memorandum on profit forecast .............................................................................................................................57 APPENDIX 1: PROCEDURE FOR APPLICATION AND ALLOTMENT.................................................................. 66 APPENDIX 2: RECEIVING AGENTS ........................................................................................................................ 67 APPENDIX 3: APPLICATION FORM......................................................................................................................... 68 APPENDIX 4: INSTRUCTIONS FOR COMPLETING THE APPLICATION FORM.................................................. 69 2 ABRIDGED TIMETABLE Date Activity Responsibility June 2009 Application List opens Issuing Houses June 2009 Application List closes Issuing