The Federal Government of Nigeria (FGN) through the Ministry of Finance (MoF) and the Debt Management Office (DMO), again demonstrated its unrelenting commitment to the development of Nigeria’s infrastructure sectors via the Nigerian debt capital markets (DCM), by listing the first sovereign Sukuk in the Nigerian DCM, the ₦100.00bn Federal Roads Sukuk Company 1 PLC 7-Year 16.47% Ijarah Sukuk due 2024 on FMDQ OTC Securities Exchange.
Sukuk are Islamic bonds, structured in such a way as to generate returns to investors without infringing Islamic law that prohibits riba or interest.
The proceeds from the issuance of this Sukuk will be used to construct and rehabilitate ear-marked roads across the six (6) geopolitical zones of Nigeria.
Dignitaries present at the ceremony include the Director-General of the DMO, Ms. Patience Oniha, along with key representatives from the DMO.
Also present at the Ceremony were the co-sponsors to the issue on FMDQ and Registration Members of the OTC Exchange, FBNQuest Merchant Bank Limited, represented by its Managing Director/CEO, Mr. Kayode Akinkugbe and Lotus Financial Services Limited, represented by Mrs. Hajara Adeola, Managing Director/CEO, and other parties to the issue.
FMDQ was registered by the Securities and Exchange Commission (SEC), Nigeria in 2012, and launched in 2013, with a primary focus on organising and deepening the markets, and as a self-regulatory organisation for the OTC markets.