DMO to issue N250bn Sukuk for road projects

The Debt Management Office (DMO) has said it will issue a Sovereign Sukuk this year to raise between N200 billion and N250bn to finance road projects. In a statement on its website, DMO said since the issuance of Sukuk in 2017, the bond had led to the improvement of road infrastructure in the country. The […]

The Debt Management Office (DMO) has said it will issue a Sovereign Sukuk this year to raise between N200 billion and N250bn to finance road projects.

In a statement on its website, DMO said since the issuance of Sukuk in 2017, the bond had led to the improvement of road infrastructure in the country.

The statement reads in part: “The DMO commenced the issuance of Sukuk in September, 2017, as a strategic initiative to support the development of infrastructure, promote financial inclusion, and deepen the domestic securities market.”

It further said subsequent to the debut of the Sovereign Sukuk in 2017 in which N100bn was raised to finance the rehabilitation and construction of 25 road projects across the six geopolitical zones, it issued a Sukuk for N100bn in 2018, and another for N162.557bn in 2020.

It disclosed that the proceeds of the two Sukuk issuances were also deployed to 28 and 44 road projects, also in the six geopolitical zones.

The statement added that a total of N362.577bn Sovereign Sukuk was issued in four years with its benefits evidenced in improved road networks.

DMO said the use of Sukuk had enabled timely completion of the designated projects while delivering multiplier effects associated with the construction of capital projects.

The agency added that it had appointed transaction parties through an open competitive bidding process for the issuance of the bond.