Nigeria’s DMO, the Debt Management Office, is set to issue a fourth Sovereign Sukuk bond this year for an amount of N200 – N250 billion to finance road projects across the country.
Sukuk is Arabic for ‘financial certificates,’ also commonly called “sharia compliant” bonds.
Since its introduction in September 21, 2017, the DMO said it has issued N362.57 billion worth of Sukuk.
Giving the history of the Sukuk bond in Nigeria, DMO stated: “Subsequent to the debut 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, the DMO issued a Sukuk for N100 billion in 2018 and another for N162.55 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 N362.57 billion Sovereign Sukuk was issued between September 2017 and June 2021.
“The DMO has already appointed Transaction Parties through the Open Competitive Bidding Process for the issuance of this fourth Sovereign Sukuk. The Transaction Parties and their respective roles are Issuing Houses – Stanbic IBTC Capital Limited, Greenwich Merchant Bank Limited and Vetiva Capital Management Limited; Financial Adviser – BURAQ Capital Limited; Trustees- FBNQuest Trustees Limited and APEL Capital & Trust Limited; and Legal Advisers- Abdulai, Taiwo & Co. Solicitors and Tsedaqah Attorneys.”