The offer for subscription of the Federal government N100 billion Sukuk which ended today, September 20th, has been extended by 2 more days, according to a circular from the Debt Management Office (DMO) today.

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DMO said apart from serving as alternative source of funding for the Government, the Sukuk will also serve to diversify the investor base for FGN Securities, promote financial inclusion and deepen the domestic capital market.

 The debt office said the proceeds from the Sukuk Issuance, will be used to finance specific road projects. Sukuk are asset-based securities, not debt instruments, and represents ownership in a tangible asset, service, project, business or joint venture.

 The debut Sovereign Sukuk is for N100 billion with a tenor of Seven (7) years, and has been certified as ethically compliant by the Financial Regulation Advisory Council of Experts of the Central Bank of Nigeria.

Already the FBN Merchant Bank Limited and Lotus Financial Services Limited have been appointed as Joint Financial Advisers to the Debt Management Office (DMO) for the  inaugural FGN N100 billion Sukuk offer.

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’.