Adeosun Hands Over N100bn Sukuk Fund To Fashola

The N100 billion realised from the Sukuk bond offer was yesterday handed over to the Minister of Power, Works and Housing, Barrister Raji Fashola, in his office in Abuja by the Minister of Finance, Mrs Kemi Adeosun assisted by the Director-General of the Debt Management Office, Ms Patience Oniha.

Receiving the N100 billion cheque, Fashola conveyed the federal government’s appreciation of what he described as an excellent synergy between the Ministry of Finance, the DMO and the Financial Advisers for the transaction- Lotus Capital and FBN Merchant Bank, which led to the huge success of the Sukuk offer. He also noted that the oversubscription of the offer was a clear message from the investors regarding their confidence in the economy, a demonstration of their confidence in Nigeria as a veritable investors’ haven.

On her part, the Finance Minister said that the success of the Sukuk offer was an important development that would further add to the growth of the economy and asserted that Sukuk encouraged financial inclusion by bringing new investors into the bond market.

The money, to be used to finance projects that cut across the six geopolitical zones, according to Adeosun, will hopefully unlock the potentials of the Nigerian economy and reveal her enormous untapped resources. The money was shared equally and each zone received N16.67 billion.

Speaking after the handing over ceremony, Oniha said that the offer highlighted the economic benefits inherent in the Sukuk as a financing instrument for the nation’s infrastructure development. Even more than that, she said, was the gains derivable from the healthy inter-agency collaboration and partnership that contributed immensely to the oversubscription of the offer, the proceeds of which will be used to improve the country’s road infrastructure.

The N100 billion seven-year debut Sukuk offer by the Debt Management Office (DMO) is a project-tied investment facility which attracted investors from across a broad spectrum of the public comprising pension funds, banks, fund managers, institutional and retail investors. It achieved the objectives of financial inclusion and diversification of investor base through the participation of over a thousand retail investors from across the nation who accounted for over five per cent of the total subscription.