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Nigeria to issue $610 mn sovereign sukuk on its domestic market

Nigeria sukuk-IFM-image
The fund is being raised to finance road projects, according to the Debt Management Office

The Nigerian federal government is set to another Sovereign Sukuk this year for an expected maximum amount of $610 million. The funds will be used to finance critical road projects across the country, according to the Debt Management Office (DMO).

The DMO said in a statement, “The Debt Management Office is set to issue another Sovereign Sukuk this year for an expected amount of N200 – N250 billion to finance critical road projects across the country.”

“Since the debut Sovereign Sukuk in September 2017, whose benefit in terms of improved road infrastructure within and outside cities in Nigeria is clearly visible, the Sukuk has been commended as a viable instrument for financing infrastructure.

“The use of Sukuk has enabled timely completion of the designated projects whilst also delivering the multiplier effects associated with the construction of capital projects such as roads.”

Earlier this year, the Indonesian government listed three sukuk valued at $3 billion on NASDAQ Dubai, which will help fund the Southeast Asian country’s social and economic development. The first listing includes a bond of $1.25 billion, yielding an interest rate of 5 percent over a period of five years.

The second one is that of a $1 million bond with a coupon of 2.55 percent yield and 10 years maturity, and the third one is a $750 million green sukuk with an interest rate of 3.55 percent over 30 years. This brings Indonesia’s total value of listed sukuk to $19.75 billion.

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