IslamicFinance.de

In Lagos, the Debt Management Office started a national road show last week in preparation for the issuance of the much awaited N100bn non-interest bearing Sukuk bond.
The Office said in a statement, that the road show led by the Director-General, Ms Patience Oniha, would also be held in Kano, Kaduna and Port Harcourt. It said the team would be accompanied by its financial advisers, Lotus Capital Financial Services Ltd. and FBN Merchant Bank Plc.
The road show is to create awareness about the sovereign Sukuk and sensitise target investors about its features and benefits. The Office had announced its intention to issue a sovereign Sukuk in the domestic market as part of measures to fund the 2017 budget deficit.
According to the statement: “Apart from serving as an alternative source of funding for the government, the Sukuk will also serve to diversify the investor base for Federal Government securities, promote financial inclusion and deepen the domestic capital market. It is expected that the Sukuk will attract huge subscriptions from a wide range of institutional and retail investors including fund managers, associations and groups. The offer for subscription will open in the week after the road-show and will be advertised in major newspapers.’’
Aim is to make it accessible to a wide spectrum of Nigerians, the minimum amount that an investor can purchase has been fixed at N10, 000 only. The Office said that proceeds from the Sukuk issuance would be used to finance specific road projects. Other benefits are safety and regular income which are tax-free and will be listed and traded on the Nigerian Stock Exchange and the FMDQ OTC Securities Exchange Plc