DMO Appoints Transaction Parties for N200bn Sukuk

Ndubuisi Francis in Abuja

The Debt Management Office (DMO) has appointed Stanbic IBTC Capital Limited, Greenwich Merchant Bank Limited and Vetiva Capital Management Limited issuing houses as it sets for another Sovereign Sukuk of between N200 and N250 billion to finance critical road projects across the country.

The DMO disclosed Tuesday that BURAQ Capital Limited will act as financial adviser, while FBNQuest Trustees Limited and APEL Capital & Trust Limited are trustees to the impending Sukuk issuance, the fourth since 2017.

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

The debt management agency said the transaction parties were appointed through the open competitive bidding process.

The DMO commenced the issuance of Sovereign 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 issuance 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 another Sukuk for N100 billion in 2018 and another for N162.557 billion in 2020.

The proceeds of the two issuances were also deployed to 28 and 44 road projects respectively, also in the six geopolitical zones.

A total of N362.577 billion Sovereign Sukuk have so far been issued between September 2017 and June 2021.

The DMO stated Tuesday: “Since the debut Sovereign Sukuk in September 2017, whose benefit in terms of improved road infrastructure within and outside cities in Nigeria is clearly visible, the Sukuk has been commended as a viable instrument for financing infrastructure.

“The use of Sukuk has enabled timely completion of the designated projects whilst also delivering the multiplier effects associated with construction of capital projects such as roads.”