2023 FGN Series VI Sukuk Issuance
The Federal Government of Nigeria’s (“FGN” or the “Issuer”) Series VI Sovereign Sukuk of NGN150 billion (the “Issue” or “the Offer’’) is now open and is scheduled to close on Wednesday, 11 October 2023.
The DMO commenced the issuance of Sovereign Sukuk in September 2017 as part of its strategic initiative to support the development of critical infrastructure, 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 and bridges across the six (6) geo-political zones and Federal Capital Territory by the implementing agencies of the Federal Government.
Offer Summary:
| Issuer: | FGN Roads Sukuk Company 1 Plc |
| Obligor: | Federal Government of Nigeria |
| Instrument: | Forward Al Ijarah (Lease) Sukuk |
| Joint Issuing Houses: |
Greenwich Merchant Bank Limited Stanbic IBTC Capital Limited; and Vetiva Capital Management Limited |
| Financial Adviser: | Buraq Capital Limited |
| Issue Size: | NGN150 billion |
| Tenor: | 10 years |
| Rental Rate: | 15.75% |
| Rental Payment: | Payable half Yearly |
| Repayment: | Bullet sum at maturity |
| Use of Proceeds: |
The funds will be used to finance rehabilitation and construction of road projects and bridges identified by the implementing agencies of by Federal Government. 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. Classified as Liquid Assets by the Central Bank of Nigeria. Qualifies as securities in which trustees can invest under the Trustees Investment Act. |
| Distribution: | Fixed price public offering to all classes of investors. |
| Offer Opens: | Tuesday, 03 October 2023 |
| Offer Closes: | Wednesday, 11 October 2023 |
| Settlement Date: | Friday, 13 October 2023 |
| Minimum Subscription: | Minimum of NGN10,000 (at NGN1,000 per unit) and in multiples of NGN1,000 thereafter |
| Shari’ah Compliance Status: | Shari’ah compliant; structure and transaction documents approved by the Financial Regulatory Advisory Council of Experts (FRACE) of the Central Bank of Nigeria. |
| Listing: | Nigerian Exchange Limited and FMDQ Securities Exchange Limited. |
| Security: | Backed by the full faith and credit of the Federal Government of Nigeria. |
Application Process
- Make payment for subscription.
- Send the filled Offer subscription form and the evidence of payment to [email protected]
Offer Guidance Documents
- FGN Sukuk VI Prospectus.
- DMO Sukuk Series VI Subscription Form for Qualified Institutional Investors (QIIs).
- DMO Sukuk Series VI Subscription Form for Retail and other Non-QIIs.
- FRACE Certificate.
- Construction Agency Agreement FCTA and FMWH.
- Declaration of Trust.
- Forward Ijarah Agreement FCTA and FMWH.
- Purchase Undertaking FCTA and FMWH.
- Sale Undertaking for FCTA and FMWH.
- Service Agency Agreement.
- DMO’s Offer Circular.
For enquiries, kindly email [email protected]