FG spent N609bn on debt servicing between January-March ― DMO
DMO-debt management office

By Emma Ujah, Abuja Bureau Chief

The Debt Management Office (DMO) has opened the offer for a new N250 billion Sovereign Sukuk bond being raised by the Federal Government for development of road infrastructure across the country.

This bond, a fourth to be issued by the DMO since its first Sukuk issuance in September 2017, is for a Tenor of ten (10) years at a rental income of 12.80 percent per annum, to be paid half-yearly.

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Appraising the need for the bond, the DMO said, “The impact of the Sovereign Sukuk on road infrastructure in terms of job creation, travel time, safety and movement of goods have made the Sukuk a beneficial financial instrument for financing economic growth and development.

“Institutions, individuals, associations and cooperative societies can invest in the Sovereign Sukuk thereby supporting the DMO towards raising project-tied funds and promoting financial inclusion.”

The DMO commenced the issuance of Sukuk in September 2017 as a strategic initiative to support the development of infrastructure, promote financial inclusion and deepen the domestic securities market.

Subsequent to the debut Sovereign Sukuk in 2017 in which N100 billion was raised to finance the rehabilitation and construction of twenty-five (25) road projects across the six (6) geopolitical zones, the DMO issued a Sukuk for N100 billion in 2018 and another for N162.557 billion in 2020.

The proceeds of these two (2) Sukuk issuances were also deployed to twenty-eight (28) and forty-four (44) road projects, across the country.

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