Finance

DMO to issue N250 billion Sukuk bond

Debt Management Office (DMO)

The Debt Management Office (DMO) says it will issue about N250 billion Sukuk to finance road projects.

The DMO said this in a statement released on Tuesday.

The Sukuk is a strategic initiative that supports the development of infrastructure, promotes financial inclusion and deepens the domestic securities market.

Since the establishment of the initiative in September 2017, DMO had issued three Sovereign Sukuk — 2017, 2018 and 2020

“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 proceeds of these two (2) Sukuk issuances were also deployed to twenty-eight (28) and forty-four (44) road projects, also 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 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.

FBNQuest Trustees Limited and APEL Capital & Trust Limited are trustees for the issuance.

Abdulai, Taiwo & Co. Solicitors and Tsedaqah Attorneys will act as legal advisers.

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