FBN Merchant Bank Limited and Lotus Financial Services Limited have been appointed as Joint Financial Advisers to the Debt Management Office (DMO) of the Federal Government of Nigeria on the inaugural FGN N100 billion Sukuk offer.
The offer was opened to the public on the 14th of September, and is billed to close on the 20th of September following a series of investor meetings in Lagos, Abuja, Port Harcourt, Kano and Kaduna by the Advisers and the DMO, to interact with investors and provide information on the purpose, structure and benefits of the Issuance.
As a Joint Financial Adviser, FBN Merchant Bank assisted the DMO with the determination of the requirements for structuring the Issuance, working with Lotus Financial Services, Legal Advisers and Incorporated Trustees on the transaction to structure the Sukuk and prepare relevant transaction documents in compliance with legal and regulatory requirements.
The FGN Sukuk Issuance supports financial inclusion goals by providing access to individuals and communities that traditionally have had limited or no access to the formal financial sector, providing a secure investment opportunity for ethically-minded investors, and offering attractive returns similar to conventional sovereign instruments. According to Mr. Taiwo Okeowo, Deputy Managing Director of FBN Merchant Bank Limited ‘While Sukuk issuance is not new in domestic capital markets, we are proud to be working with the DMO on this offer as its potential as a comparably cheaper source of long-term infrastructure financing remains untapped’.
Proceeds from the Issuance will be used solely for the construction and rehabilitation of key roads across the six geopolitical zones of the country, while rental payments and redemption are backed by the full faith and credit of the Federal Government of Nigeria and qualify as securities for trustees, pension funds, banks, individuals and various investors.