By Ashemiriogwa Emmanuel
The Debt Management Office (DMO) has said that it will issue another sovereign Sukuk this year to be used to finance some critical road projects across the country.
According to the agency in a statement issued on Tuesday, November 2, 2021, the bond to be sold to interested investors is between N200 billion and N250 billion.
The debt office noted that the proposed sale, which is expected before the end of this year, would be the fourth since the Sukuk issuance debuted in September 2017.
Already, the DMO has appointed BURAQ Capital Limited as the financial adviser, while Stanbic IBTC Capital Limited, Greenwich Merchant Bank Limited, and Vetiva Capital Management Limited are the issuing houses.
The trustees for the issuance are FBNQuest Trustees Limited and APEL Capital & Trust Limited, while Abdulai, Taiwo & Co. Solicitors, and Tsedaqah Attorneys are the legal advisers.
Expressing optimism that the fresh offer will bring about high subscription levels, the DMO noted that, “The use of Sukuk, has enabled timely completion of the designated projects whilst also delivering the multiplier effects associated with the construction of capital projects such as roads.”
The issuance of Sukuk is a strategic initiative that started in September 2017 where the federal government was able to successfully raise N100 billion to fund the renovation and construction of 25 road projects across the six geopolitical zones, after which it issued two others in subsequent years.
“DMO issued a Sukuk for N100 billion in 2018 and another for N162.557 billion in 2020. The proceeds of these two Sukuk issuances were also deployed to 28 and 44 road projects, also in the six geopolitical zones.
“In summary, a total of N362.577 billion Sovereign Sukuk was issued between September 2017 and June 2021,” the office explained in the statement.
