The Federal Government of Nigeria (FGN) through the Debt Management Office (DMO) is looking set to raise an additional N250 billion this year, through the issuance of another Sovereign Sukuk.

According to a notice made available on the website of the DMO, the net proceeds of the issuance will be used to finance critical road projects across the country.

Recall that the DMO commenced the issuance of Sukuk in September 2017,  as a strategic initiative to support the development of infrastructure, promote financial inclusion and deepen the domestic securities market. gathered that N100 billion was raised  through the issuance of the sovereign Sukuk in 2017, and the amount was deployed to finance the rehabilitation and construction of twenty-five (25) road projects across the six (6) geopolitical zones.

Consequently, the DMO issued two successive Sukuk bonds in 2018 and 2020 worth N100 billion and N162.557 billion respectively. The proceeds of these two (2) Sukuk issuances were also used to fund the construction and rehabilitation of twenty-eight (28) and forty-four (44) road projects respectively, in the six (6) geopolitical zones

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

The DMO announced that it has already appointed Transaction Parties of its proposed offer. The transaction parties were appointed through the Open Competitive Bidding Process, and they are; Stanbic IBTC Capital Limited, Greenwich Merchant Bank Limited and Vetiva Capital Management Limited (Issuing Houses); Buraq Capital Limited (Financial Adviser); FBNQuest Trustees Limited and APEL Capital & Trust Limited (Trustees); Abdulai Taiwo & Co, Solicitors and Tsedaqah Attorneys (Legal Advisers).

Kindly note that the public offer period for the proposed Sovereign Sukuk is yet to be announced, watch out for this information by subscribing to our specially edited newsletter.

All You need to Know About SUKUK Bonds

How can I invest or participate?                              

Based on antecedents, it is pertinent to note that both retail and institutional investors can invest in this offer. In fact it is tailored to serve the needs of retail investors, high net worth individuals, institutional investors, corporate societies, religious bodies, state investment companies and ethically inclined investors.

To invest, one needs to visit the office of the transaction parties, especially the financial adviser (Buraq Capital Limited) to obtain the prospectus and application, OR download the forms from the website of the DMO or that of the financial advisers.

One could also contact any of the placement agents for guide. Placements agents in the last offers were; Access Bank, CitiBank, Coronation Merchant Bank, Ecobank, First Bank, FCMB, FSDH Merchant Bark, GT Co, Stanbic, Standard Chartered, UBA and Zenith Bank.

Sukuk is an investment certificate that represents the ownership interest of the holder in an asset or pool of assets. The certificate entitles the holder to receive income from the use of the assets.