DMO To Issue N250bn Sukuk For Road Projects

The Debt Management Office says it is set to issue another sovereign sukuk this year for an expected amount of N200bn to N250bn to finance critical road projects across the country.

It disclosed this in a statement on its website on Tuesday with the title ‘Towards financing infrastructure: Debt Management Office to issue another sovereign sukuk.’

The DMO said it had already appointed transaction parties through the open competitive bidding process for the issuance of this fourth sovereign sukuk.

The DMO stated that it 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 N100bn was raised to finance the rehabilitation and construction of 25 road projects across the six geopolitical zones, the DMO stated that it issued a sukuk for N100bn in 2018 and another for N162.557bn in 2020.

It said the proceeds of these two sukuk issuances were also deployed to 28 and 44 road projects, also in the six geopolitical zones.