DMO set to issue FG’s N100 billion Sukuk bond

Patience Oniha, the Director General of the Debt Management Office (DMO), has announced that the Federal Government would in December, float N100 billion Sukuk. This is will be the second tranche of Sukuk Bond issuance by the DMO.

Oniha said,

“June was when the budget was approved and Sukuk is a project that was also approved in the budget. We will float it; we have made significant progress; we will issue it this year.”

According to Oniha, the DMO was working with the Ministry of Power, Works and Housing on the projects earmarked for the N100 billion Sukuk bond. She also expressed optimism that the bond would be oversubscribed, based on the feelers from investors and the public.

“…in terms of Sukuk, I think from the feelers we have got from investors and the public, it is a product the people want to associate with.” – Oniha

Sukuk are Islamic bonds, structured in such a way as to generate returns to investors without infringing Islamic law that prohibits riba or interest.

The proceeds from the issuance of the Sukuk bond are often used for construct and rehabilitate infrastructure in Nigeria.

Nairametrics had reported the first tranche of Sukuk bond issuance by the Federal Government through the Debt Management Office (DMO), which was used to fund the rehabilitation and construction of roads.

Some of the roads funded by the first tranche include the Ibadan-Ilorin Road, Kolo-Otuoke-Bayelsa-Palm Road, Enugu-Port/Harcourt Road, Kaduna Eastern By-Pass, Kano-Maiduguri Road and Loko-Oweto Bridge over River Benue, among others.

Some of the roads funded by the first tranche include the Ibadan-Ilorin Road, Kolo-Otuoke-Bayelsa-Palm Road, Enugu-Port/Harcourt Road, Kaduna Eastern By-Pass, Kano-Maiduguri Road and Loko-Oweto Bridge over River Benue, among others.

 

Source: Nairametric

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