Fashola Receives N100bn Sukuk Proceeds To Build 28 Economic Roads

Must Read

FIRS lists Slot, GIG Motors, Davido, Obasanjo, others among 19,901 tax defaulters, shuts accounts (Full List)

A number of prominent individuals and organizations have been included in a list of 19,901 tax defaulters released by...

How Blockchain might change the whole fashion industry – and safeguard the authenticity of your goods

So far you have probably only heard of blockchain in connection with financial transactions and Bitcoins.Well, that should change...

Most Financial Services Firms ‘Not Prepared’ For Digital Transformation, Research Suggests

Tens of thousands of financial services businesses are avoiding upgrading their digital systems because they don’t deem digital transformation...
- Advertisement -
- Advertisement -

The Federal Government of Nigeria on December 28, 2018, issued a 7-year N100 billion Sovereign Sukuk (15.743% N100BN Al Ijarah Sukuk due 2025) as part of the New Domestic Borrowing in the 2018 Budget to finance road projects. The Offer attracted significant interest from a wide range of retail and institutional investors with a Total Subscription of N132.20 billion, which represents a Subscription Rate of 132.2%.

Retail Investors accounted for 17.33% of the Total Allotment compared to 4% recorded in the debut Issuance, indicating that the stated objectives of financial inclusion and deepening of the investor base for FGN securities, in addition to infrastructure funding are being achieved.

The Honourable Minister of Finance Presents Symbolic N100 Billion Sukuk Cheque to the Federal Ministry of Power, Works And Housing

The high level of subscription and participation by a diverse range of investors demonstrate the high level of investor confidence in the financing product, particularly, because the Road Projects funded with the Proceeds of the first Sukuk that was issued in 2017 were evident for all to see. The Twenty-Five (25) Road Projects, which benefited from the debut Sukuk have resulted in improved transportation across the six (6) geopolitical zones.

Read:  INTRODUCING FGN SAVINGS BOND OFFER FOR OCTOBER 2017

The Sukuk Offer opened following Investor Meetings in Lagos and Abuja by a delegation led by the Director-General of the Debt Management Office, Patience Oniha, and included representatives of the Federal Ministry of Power, Works and Housing and the Transaction Parties for the Sukuk Issuance. The Transaction Parties were: FBNQuest Merchant Bank Limited, Lotus Financial Services Limited, Banwo & Ighodalo and Sefton Fross, FBNQuest Trustees Limited and STL Trustees Limited.

Read:  Uptick in Internet Subscription on GSM Platforms

The proceeds of this second Sovereign N100 billion Sukuk will also be deployed to financing infrastructure, in keeping with the Government’s commitment to bridging the infrastructural gap. The proceeds will be for the Construction and Rehabilitation of Twenty-Eight (28) key economic Road Projects in the 2018 Budget. The Road Projects are located in the six (6) Geo-political Zones of the country with each Zone having a total allocation of N16.67 billion.

Read:  INTRODUCING FGN SAVINGS BOND OFFER FOR APRIL 2019

Commenting on the successful Issuance of the second N100 billion Sovereign Sukuk, the Director-General, Debt Management Office said that:

“Sukuk has become a veritable tool for financing infrastructure which has several multiplier effects including job creation and boosting economic activities. In addition to being a viable tool for financing infrastructure, the Sovereign Sukuk promotes financial inclusion and the development of the domestic financial markets

- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

Skye Bank & Fortis Microfinance Bank Removed From Nigerian Stock Exchange Listing

The Nigerian Stock Exchange (NSE) on Wednesday delisted Skye Bank Plc and Fortis Microfinance Bank Plc following permission from...

Itanna Launches 2nd Accelerator Programme

21st August 2019. Itanna, the corporate venture capital platform of Honeywell Group, has officially announced the launch of the second edition of its accelerator and investment programme.  As...

NIPC Takes Innovative Approach to Market Investment Opportunities in the Country

The Nigerian Investment Promotion Commission (NIPC) has said that it is profiling investment opportunities across sectors in Nigeria.The Director, Investment Promotion of the Commission,...

African Energy Chamber Welcomes Appointment of New Nigerian Petroleum Minister

As a former Governor of the Bayelsa State, in the core Niger Delta region, H.E. Timipre Silva understands the core issues affecting Nigeria’s oil...

More Articles Like This