The Debt Management Office of Nigeria, today listed the pioneer FGN Sovereign Sukuk N100bn at the FMDQ OTC exchange in Lagos.
Described as an Infrastructure classified bond, the Sukuk is now the first non-interest capital instrument developed by the FMDQ and issued by DMO on behalf of the Federal Government.
Giving her remarks at the listing ceremony the Director-General of DMO Nigeria, Ms Pat Oniha said the bond will be utilized to raise funds for infrastructure and promote financial inclusion in the country.
She commended the financial advisors, legal adviser and trustees who worked assiduously to achieve the listing of the bond.
According to her “The DMO Nigeria has inspected the projects that the Sukuk is financing, and I want to assure all stakeholders that the funds are warehoused and will be judiciously utilized”.
The MD/CEO of FBN Quest Merchant Bank Mr Kayode Akinkugbe lauded the listing of the Sukuk Bond, stating that it was an attestation to hardwork, commitment and dedication from all parties involved.
Also speaking at the event, the MD/CEO Lotus Capital Mrs Hajara Adeola believed the FGN Sukuk Bond listing was a welcome development to the Nigerian capital market, and was optimistic that with its focus on infrastructure will have far-reaching impact on the economy.
Tunmi Sekoni Vice-President of the FMDQ OTC represented the MD/CEO Mr Bola Onadele at the event.
The N100bn Sukuk has been earmarked to finance the rehabilitation of 25 federal roads cutting across the six geo-political zones in the country.
At the moment it has attracted about 106% subscription, revealing a huge investor appetite for the bond.
FBN Quest Merchant Bank and Lotus Capital are financial advisors for the Sukuk bond, with FBN and Skye as trustees.