Sukuk bond: DMO seeks transaction advisers

Debt Management Office (DMO)

The Debt Management Office (DMO) has announced openings for transaction advisers to organise Sukuk bonds in the Nigerian capital market.

The DMO announced this in a notice posted on its website on Monday.

In 2016, the federal government had announced similar intentions to organise its first Islamic bond in the domestic market.

“The Debt Management Office (DMO) on behalf of the Federal Government of Nigeria (FGN) seeks to appoint Transaction Parties for the Issuance of Sovereign Sukuk in the domestic capital market through an Open Competitive Bidding process,” DMO said.

“In this regard, the DMO hereby invites Expression of Interest/Prequalification Documents (EOI) from qualified and reputable Firms who are interested in offering their services.”

DMO said the transaction advisers include issuing houses, financial advisers, trustees and legal advisers.

It said the appointment is for the issuance of sovereign Sukuk for the financing of infrastructure projects approved in the national budget.

DMO said the issuing house responsibilities include preparation of the prospectus; advising on marketing and distribution strategies, media campaigns and investor meetings; and managing the offering of the Sukuk.

“The Issuing Houses would work with other Transaction Parties to prepare all the offering and contractual documents.”

Financial advisers will provide their expertise on the general structure of the transaction, review all offer and marketing documents, ensure compliance of transaction with non-interest financial principles, and engage the authorised exchanges for listing of the Sukuk.

DMO said the trustees will “perform the roles of Delegate Trustees to the Sukuk holders and ensure that all the contractual obligations of the parties to the Sukuk Transaction are enforced”.

Then the other transaction adviser will provide legal advice in all areas of the transaction, including drafting and reviewing all transaction and offer documents in conjunction with other transaction parties.

According to the statement, bids for the roles are to be submitted not later than 12 pm on May 10, 2021 and addressed to its head office in Abuja.

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