Nigeria will fi nally make its N100 billion Sukuk bond debut on September 18, 2017, to enable it raise money for infrastructure funding, Debt Management Offi ce (DMO) offi cials have confi rmed.
Th e debut Sovereign Sukuk is for N100 billion with a tenor of seven years, has been certifi ed as ethically compliant by the Financial Regulation Advisory Council of Experts of the Central Bank of Nigeria.
Th e DMO also announced that it had kicked off activities preparatory to the issuance of the much awaited Sukuk, and it began with a national roadshow yesterday, to be led by its director-general, Patience Oniha.
Th e team will be accompanied by its fi nancial advisers, Lotus Capital Financial Services Limited and FBN Merchant Bank Plc.
Th e team is expected to visit major cities in Nigeria, including, Kano, Kaduna, Lagos and Port Harcourt during the road-show to create awareness about the Sovereign Sukuk and sensitise targetinvestors about the features and benefi ts of the Sovereign Sukuk.
According to the DMO, the off er for subscription, which is expected to opens on September 18, will be on for fi ve days till September 22, following advertisements in major newspapers.
Th e road show will end on September 14.
“It is expected that the Sukuk will attract huge subscriptions from a wide range of institutional and retail investors including Fund Managers, associations and groups,” the debt offi ce said in a mailed statement midweek.
Nigeria’s Federal Government is implementing a record N7.441 trillion budget for 2017 to turn the ailing economy to recovery and growth, amid tight incomes.
Total revenue for the 2017 fi scal year was projected at N5.08 trillion, resulting to a projected overall defi cit of N2.
356 trillion, and representing 2.18 per cent of GDP.
Th e budget defi cit is to be fi nanced mainly be borrowing N2.32 trillion, out of which government hopes to source N1.25 trillion domestically and N1.07 trillion from foreign sources
