Sukuk Public Offer: DMO to Attract Retail Investors

  • Sukuk Public Offer: DMO to Attract Retail Investors

The Debt Management Office said more arrangement has been put in place to attract retail investors to the second N100 billion Sukuk Public Offer.

Ms Patience Oniha, the Director-General, who disclosed this during Sukuk Investor Forum held in Lagos, said the second offer which will close on December 17, 2019, has Lotus Financial Services and FBNQuest Merchant Bank as financial advisers.

She said: “The first Sovereign Public Offer issued last year was well subscribed and successful but the participation of retail investors was just 5 percent; this time around we want more retail investors to participate as arrangement has been put in place to ensure their participation is enhanced. For instance, we would be engaging the stockbrokers and also increase the outlets. We are encouraging Nigerians to get registered with Central Securities Clearing System, CSCS so that some of the hitches experienced by some investors who are not aptured in the CSCS system during the first Sukuk issuance do not repeat. Though, this time around we would engage stockbrokers to ensure that retail investors participate more.”

Continuing, the BPE boss said: “The federal government through a Special Purpose Vehicle, SPV, namely FGN Road Sukuk Company 1 Plc , is issuing N100 billion with 15.743 percent Rental Rate payable semi-annually to subscribers of the Sukuk Al Ijarah (Lease). The Sukuk has a tenor of 7 years while the bullet sum would be to investors at maturity.”

According to her “The use of the proceeds is for road construction and rehabilitation. The main objective of the second Sukuk is to sustain the rehabilitation and construction works on the 25 key economic roads in the 6 geopolitical zones with 3 roads now added for more reach.”

Speaking as well, Managing Director, Lotus Financial Services Limited, Hajara Adeola, said: “We encourage Nigerians to participate in the ongoing second FGN Sukuk given the success of the first one and the enthusiasm so far received for higher issuance. Any information regarding the offer investors can reach Lotus and FBNQuest for clarification.”

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya

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