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FG to Borrow Another N250 Billion to Finance Critical Road Projects

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Sovereign Sukuk

The Federal Government through its agency, Debt Management Office (DMO), a government agency established to centrally coordinate the management of Nigeria’s debt, is set to issue another Sovereign Sukuk this year for N200 to N250 billion to finance critical road projects across Nigeria.

DMO disclosed in a statement released on its website and obtained by Investors King on Tuesday.

DMO issued the first Sukuk in September 2017 to support the development of infrastructure, promote financial inclusion and deepen the domestic securities market. The agency raised N100 billion to finance the rehabilitation and construction of twenty-five (25) road projects across the six (6) geopolitical zones.

In 2018, the DMO raised another N100 billion and N162.557 billion in 2020 through Sovereign Sukuk issuances. The funds from the two issurances were used to finance 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.

According to the DMO, “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.”

The DMO appointed Transaction Parties through the Open Competitive Bidding Process for the issuance of its fourth Sovereign Sukuk. The Transaction Parties and their respective roles are stated below:

a. Issuing Houses     –      Stanbic IBTC Capital Limited, Greenwich Merchant Bank Limited

                                            and Vetiva Capital Management Limited.

b. Financial Adviser –       BURAQ Capital Limited.

c. Trustees       –             FBNQuest Trustees Limited and APEL Capital & Trust Limited

d. Legal Advisers       –     Abdulai, Taiwo & Co. Solicitors and Tsedaqah Attorneys

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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