- DMO offered N162.557bn in 2020
The Debt Management Office (DMO) is set to resume the financing of critical road infrastructure across the country with Sovereign Sukuk bond instrument.
The debt agency is targeting to raise between N200 billion and N250 billion to finance critical road projects across the country this year for fourth consecutive time.
Between September 2017 and June 2021, a total sum of N362.577 billion Sovereign Sukuk was issued for financing roads across thr six geo-political zones of the country by the Federal Government
The debt agency confirmed the pending issuance of another Sovereign Sukuk before the winding down of this year in a statement issued on Tuesday. 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.
Subsequent to the debut of Sovereign Sukuk in 2017 in which N100 billion was raised to finance the rehabilitation and construction of 25 road projects across the six geopolitical zones, 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. Transaction parties for the Sovereign Sukuk had been through open competitive bidding process for the issuance of fourth Sovereign Sukuk.
They are Stanbic IBTC Capital Limited, Greenwich Merchant Bank and Vetiva Capital Management Limited as issuing houses, financial adviser is Buraq Capital Limited, trustees are FBNQuest trustees Limited and APEL Capital & Trust Limited while legal advisers are Abdulai, Taiwo & Co. Solicitors and Tsedaqah Attorneys.
Since the debut of Sovereign Sukuk in September 2017, its benefits have led to the improvement of road infrastructure within and outside cities in Nigeria.