November 23, 2022/InvestmentOne Update
the Federal Government of Nigeria’s (“FGN” or the “Issuer”) announcesa Series V Sovereign Sukuk of up to NGN100 billion (the “Issue” or “the Offer’’). The Offer is now open and is scheduled to close on Tuesday, November 29, 2022.
The DMO commenced the issuance of Sovereign Sukuk in September 2017 as a strategic initiative to support infrastructure development, promote financial inclusion, and deepen the domestic securities market. As with previous issuances, the proceeds of the Issue will be used to finance the rehabilitation and construction of road projects across the country’s six geo-political zones.
A summary of the indicative terms of the Issue is provided below:
| 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; and Vetiva Capital Management Limited | ||
| Financial Adviser: | Buraq Capital Limited | ||
| Issue Size: | Up to NGN100 Billion (Oversubscription may be absorbed based on the discretion of the Issuer, subject to provision of additional assets) | ||
| Tenor: | 10 years | ||
| Rental Rate: | 15.64% | ||
| Rental Payment: | Rentals shall accrue for the use of the Lease Assets, from the Issue Date and is payable semi-annually in arrears in the form of a rental payment from the FGN | ||
| Repayment: | Bullet sum at maturity | ||
| Use of Proceeds: | The funds will be used to finance the rehabilitation and construction of road projects across the six geo-political zones | ||
| 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 | ||
| Liquidity: | Qualifies as eligible instruments and liquid assets for computation of liquidity ratio of Deposit Money Banks and other financial institutions under the supervision of the Central Bank of Nigeria | ||
| Distribution: | Fixed price public offering to all classes of investors | ||
| Offer Opens: | Monday, 21 November 2022 | ||
| Offer Closes: | Tuesday, 29 November 2022 | ||
| Settlement Date: | Friday, 02 December 2022 | ||
| Minimum Subscription: | Minimum of NGN10,000 (at NGN1,000/unit) and in multiples of NGN1,000 thereafter | ||
| Shari’ah Compliance Status: | Approved by the Financial Regulation Advisory Council of Experts (FRACE) of the Central Bank of Nigeria | ||
| Listing: | Nigerian Exchange Limited and FMDQ Securities Exchange Limited | ||
Kindly click these links to access the following: DMO Offer Circular, FGN Sukuk V Prospectus, and Offer Subscription Form.
