December 17, 2021/InvestmentOne Update
The Federal Government of Nigeria (“FGN”) issue of up to N250billion 10-Year Ijarah Sukuk Due 2031 is now open and scheduled to close at 2.00 pm on Wednesday, 22 December 2021.
The FGN Roads Sukuk Company 1 PLC is a special purpose vehicle set up by the FGN through the Debt Management Office with the sole purpose of raising capital from the domestic capital markets through Sukuk issuance to finance the development of road infrastructure. Sukuk are investment certificates or notes of equal value which evidence undivided interest and/or ownership of tangible assets or usufructs in compliance with Shari’ah principles.
Following its incorporation in 2017, the FGN Roads Sukuk Company 1 PLC has raised N362.6 billion (N100 billion, N100billion, and N162.6 billion in 2017, 2018, and 2020 respectively ) from the domestic capital markets.
Please find below the summarised terms of the Offer:
| Issuer: | FGN Roads Sukuk Company 1 Plc |
| Obligor: | Federal Government of Nigeria |
| Instrument: | Sukuk Al Ijarah (Lease) |
| Joint Issuing Houses: | Greenwich Merchant Bank Limited Stanbic IBTC Capital Limited Vetiva Capital Management Limited |
| Financial Adviser: | Buraq Capital Limited |
| Issue Size: | Up to NGN250 billion |
| Tenor: | 10 years |
| Rate: | 12.80% |
| Repayment: | Bullet sum at maturity |
| Use of Proceeds: | The funds will be used to finance rehabilitation and construction of road projects identified by the Federal Ministry of Works and Housing, Federal Capital Territory Administration, and the Ministry of Niger Delta Affairs |
| Status: | Direct, unconditional, unsubordinated unsecured obligations of the Federal Government of Nigeria which ranks pari passu with other outstanding present and future unsecured obligations of the Federal Government of Nigeria |
| Distribution: | Fixed price public offering to all classes of investors |
| Offer Opens: | Thursday, 16 December 2021 |
| Offer Closes: | Wednesday, 22 December 2021 |
| Minimum Subscription: | Minimum of NGN10,000 (at NGN1,000/unit) and in multiples of NGN1,000 thereafter |
To subscribe, kindly click on this link to access all relevant and accompanying documents (subscription forms for retail and institutional investors, FAQs, and the FGN Sukuk IV Prospectus).
