DMO dual lists N100 federal roads Sukuk bond

 

Debt Management Office (DMO), today listed N100 billion Federal Roads Sukuk bond on the floor of the Nigerian Stock Exchange and FMDQ OTC floors.
The agency demonstrated its unrelenting commitment to the development of Nigeria’s infrastructure sectors via the Nigerian debt capital markets by listing the first sovereign Sukuk on the NSE and FMDQ OTC.
The N100 billion bond has 16.47 percent Ijarah Sukuk expecting to due in 2024.
Speaking during the listing, Director General of the DMO, Ms. Patience Oniha said, proceed from the Sukuk bond will be used to construct and rehabilitate 25 roads across the six six geopolitical zones of Nigeria. According to her, “the DMO in pursuit of its objectives to diversify the sources of government funding and deepen the domestic capital market, successfully issued the debut N100 billion 7-Year Sovereign Sukuk on September 26, 2017. The purpose of the Sukuk is to integrate ethical investors into the domestic securities market, establish benchmark for pricing of Sukuk by other domestic issuers and offer investors the opportunity to earn returns while contributing to the infrastructure development of the country. The listing of the sovereign Sukuk on NSE and FMDQ will provide investors with the much needed transparent and efficient platform for price determination and liquidity.”
Welcoming the guests to the ceremony, Senior Vice President, Economic Development Division, FMDQ, Mr. Emmanuel Etaderhi congratulated the issuer and co-sponsors to the issue, stating that the issuance will further deepen the domestic DCM and increase the range of investible debt securities in the markets, invariably contributing to the development of the nation. He further he OTC Exchange’s commitment to continue to support the initiatives of the DMO towards the development of a highly liquid, deep and well-developed DCM in Nigeria.
Associate Executive Director, Capital Markets, FMDQ, Ms. Tumi Sekoni, whilst giving the closing remarks, applauded the issuer for achieving this milestone, stating that this was another highly laudable step by the Sovereign, through the DMO towards supporting the growth and development of the nation’s debt capital market.
In his address, Chief Executive Officer of NSE, Oscar Onyema lauded the DMO management for maintaining their commitment to coordinating the management of Nigeria’s debt, raising funds for financing government projects, and developing the capital markets.
He said, the listing lends credence to the exchange commitment to championing and advocating for the growth of the debt capital markets.
With a diversified investor base, our market offers issuers and their products access to capital and visibility, whilst delivering transparency and liquidity to investors, he said.