- FBNQuest Appointed co-financial Advisor for FGN Sukuk
FBNQuest Merchant Bank Limited has been appointed as the co-financial adviser to the Debt Management Office on the issuance of the second N100bn Sukuk offer.
The firm, in a statement on Thursday, said the appointment followed the success of the first Federal Government of Nigeria Sukuk Bond in 2017.
The statement said the Sukuk II offer was aimed at consolidating on the gains of the Sukuk I by injecting an additional N100bn, which would be directed at funding more infrastructure development projects across the country.
It said the Sukuk further sought to diversify the FGN’s source of funding, deepen the market for domestic securities and improve financial inclusion, particularly for ethical investors.
According to the statement, the Sukuk II offer will open to the public from December 6 to 17, 2018.
The statement read in part, “The first sovereign Sukuk bond was debuted by the FGN in September 2017, with FBNQuest Merchant Bank selling over 65 per cent of the total subscriptions to both institutional and retail investors.
“A major benefit of the Sukuk II is its low-risk investment profile as the FGN is fully responsible for the payment of investors’ rental income bi-annually and the repayment of the principal at maturity.”
The statement added that the rental income would be tax-free to encourage investment among the financially excluded as well as a new class of ethically-minded investors.
It added that the Sukuk II was supported by the full faith and credit of the Federal Government and offered subscribers an opportunity to contribute to the development of road infrastructure in Nigeria.
