Home Investment DMO to issue N250 billion Sukuk bond

DMO to issue N250 billion Sukuk bond

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The Debt Management Office (DMO) has announced that the federal government is set to issue another Sovereign Sukuk this year for an expected maximum amount of N250 billion to finance critical road projects across the country.

The debt office commenced the issuance of Sukuk in September 2017.

“The Debt Management Office (DMO) is set to issue another Sovereign Sukuk this year for an expected amount of N200 – N250 billion to finance critical road projects across the country,” it said in a statement on Tuesday.

The Sukuk is a strategic initiative to support the development of infrastructure, promote financial inclusion and deepen the domestic securities market.

Since the commencement of the initiative in 2017, the DMO has issued three significant Sovereign Sukuk to the tune of N362.577 billion within the past three years.

“Subsequent to the debut Sovereign Sukuk in 2017 in which N100 billion was raised to finance the rehabilitation and construction of twenty-five (25) road projects across the six (6) geopolitical zones, the DMO issued a Sukuk for N100 billion in 2018 and another for N162.557 billion in 2020,” the statement reads.

The debt office said proceeds from these Sukuk issuances were also deployed to 28 and 44 road projects across the six geopolitical zones in the country.

“In summary, a total of N362.577 billion Sovereign Sukuk was issued between September 2017 and June 2021,” the statement added.

The DMO said it had appointed transaction parties through an open bidding competitive process — Stanbic IBTC Capital Limited, Greenwich Merchant Bank Limited and Vetiva Capital Management Limited as issuing houses while BURAQ Capital Limited will be the investment analyst.

It noted that FBNQuest Trustees Limited and APEL Capital & Trust Limited are trustees for the issuance, while Abdulai, Taiwo & Co. Solicitors and Tsedaqah Attorneys will act as legal advisers.

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