DMO to issue N250bn sovereign Sukuk, appoints transaction advisers

The Debt Management Office (DMO) has announced plans to issue fresh Sovereign Sukuk worth between N200 and N250 billion before year end to finance critical road projects across the country.

This is the highest sum that the Nigerian government would be raising from a single sukuk issuance.

For three straight years now, the Nigerian government, through the DMO has raised a total of N362.577 billion from sovereign sukuk, in oversubscribed issuance deals.

In a statement, the DMO said it has already appointed transaction parties for the upcoming issuance through the Open Competitive Bidding Process for the issuance of the fourth Sovereign Sukuk.

The transaction parties and their respective roles include, Stanbic IBTC Capital Limited, Greenwich Merchant Bank Limited and Vetiva Capital Management Limited are the Issuing Houses; BURAQ Capital Limited are the Financial Adviser; FBNQuest Trustees Limited and APEL Capital & Trust Limited are the Trustees; while Abdulai, Taiwo & Co. Solicitors and Tsedaqah Attorneys were appointed as Legal Advisers.

From enquiries received from the media and investors, the DMO said it also expects a high subscription level for the Sukuk when the Offer opens.

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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.

Subsequent to the debut Sovereign Sukuk in 2017 in which N100 billion was raised to finance the rehabilitation and construction of 25 road projects across the six geopolitical zones.

The DMO issued another sukuk for N100 billion in 2018 and another for N162.557 billion in 2020.

The proceeds of these two Sukuk issuances were also deployed to 28 and 44 road projects, also in the six (6) geopolitical zones.

“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 construction of capital projects such as roads,” the DMO said.

Onyinye Nwachukwu

Onyinye Nwachukwu is the Abuja Bureau Chief of BusinessDay, overseeing coverage across Abuja and Northern Nigeria. With more than two decades of experience in economic and financial journalism, she reports on business, policy, and market trends, linking local developments to the global economy. A fellow of the International Monetary Fund (IMF) and recipient of the P. Vishwanathan Memorial Award for Excellence in Financial Journalism, she is known for her insightful storytelling and interviews with senior policymakers, diplomats, and business leaders. Well traveled and globally minded, Onyinye brings depth and international perspective to her reporting.