The issuance of the third Sovereign Sukuk, which followed the debut issuance of ₦100 billion in September 2017 and a second issuance of another ₦100 billion in December 2018, is based on the DMO’s commitment to using borrowed funds to finance infrastructure. The Sukuk Issuances are project-tied and are used to finance specific projects which are disclosed to investors.
The DMO allotted ₦162.557 billion to investors in the third Sovereign Sukuk. The proceeds of the issuance will be used to finance 44 critical Road Projects across the Six (6) Geopolitical Zones of Nigeria. The benefits from the earlier Sukuk Issuances, which were also used to finance roads, include improved safety on the roads, faster travel times, access to markets for farm produce and opening up parts of the country for development. Other important benefits of using Sukuk to finance road projects are job creation and increased level of activity for service providers, many of whom are small businesses.
The DMO expects to continue to raise funds through Sukuk to support improvement in infrastructure and development of the domestic capital market.
DEBT MANAGEMENT OFFICE
NDIC Building (First Floor)
Plot 447/448 Constitution Avenue
Central Business District
P.M.B, 532, Garki, Abuja
June 12, 2020