- Fed Govt to Float N100b Second Tranche Sukuk Bond
The Director-General, Debt Management Office (DMO), Ms Patience Oniha, yesterday expressed optimism that the second tranche of N100 billion sukuk bond would be floated before the end of the year.
Sukuk or Islamic Bond is a financial instrument structured to generate returns to ethical investors without infringing on the Islamic law, which forbids interest payments.
Oniha told the News Agency of Nigeria (NAN) in a telephone interview that the DMO had made significant progress to ensure successful issuance of the bond before year end.
“June was when the budget was approved and Sukuk is a project that was also approved in the budget.
“We will float it; we have made significant progress; we will issue it this year,’’ she said.
Oniha said the second tranche would be specifically for infrastructure development just like the first one issued in September 2017.
She said that the DMO was working with the Ministry of Power, Works and Housing on the projects earmarked for the second tranche of the N100 billion Sukuk bond.
The DG also expressed optimism that the second tranche would be oversubscribed, based on the feelers from investors and the public.
“We still have auctions regularly, we issue FGN Bonds and they have been oversubscribed. So, whether liquidity is tight or not, we have got good demands. In terms of sukuk, I think from the feelers we have got from investors and the public, it is a product the people want to associate with,’ Onoha said.’
Some of the roads funded by the bond include the Ibadan-Ilorin Road, Kolo-Otuoke-Bayelsa-Palm Road, Enugu-Port/Harcourt Road, Kaduna Eastern By-Pass, Kano-Maiduguri Road and Loko-Oweto Bridge over River Benue, among others.
