Nigeria’s Debt Office to Raise N250 Billion from Sovereign Sukuk
Towards financing infrastructure deficit in the country, Debt Management Office has announced a plan to issue another Sovereign Sukuk in 2021 for an expected amount of N200 – N250 billion to finance critical road projects across the country.
Recalls 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.
MarketForces Africa had reported Nigeria’s plan to visit the Islamic financial market for another raise amidst ongoing move into green finance across the globe. Read: DMO Plans to Issue Sukuk Bond in Third Quarter of 2021
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 also issued a Sukuk for N100 billion in 2018 and another for N162.557 billion in 2020.
It said the proceeds of these two (2) Sukuk issuances were also deployed to twenty-eight (28) and forty-four (44) road projects in the six (6) geopolitical zones. In summary, a total of N362.577 billion Sovereign Sukuk was issued between September 2017 and June 2021.
DMO explains that 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 the construction of capital projects such as roads, Nigeria’s debt office added.
The DMO said it has already appointed transaction parties through the open competitive bidding process for the issuance of this fourth Sovereign Sukuk.
It said from enquiries received from the media and investors, the DMO expects a high subscription level for the Sukuk when the offer opens. # Nigeria’s Debt Office to Raise N250 Billion from Sovereign Sukuk
