December 24, 2021/Stanbic IBTC
As an update, further to market feedback and to enable more participation from investors, the Debt Management Office Nigeria has revised the rental rate for the up to NGN250 billion Federal Government of Nigeria Series IV Sovereign Sukuk issuance to 13.00% per annum.
A summary of the indicative terms of the Issue is provided below:
| Issuer: | FGN Roads Sukuk Company 1 Plc | |
| Obligor: | Federal Government of Nigeria | |
| Instrument: | Sukuk Al Ijarah (Lease) | |
| Joint Issuing House: | Stanbic IBTC Capital Limited | |
| Financial Adviser: | Buraq Capital Limited | |
| Issue Size: | Up to NGN250 billion | |
| Tenor: | 10 years | |
| Rental Rate: | 13.00% per annum | |
| Repayment: | Bullet sum at maturity | |
| Use of Proceeds: | The funds will be used to finance rehabilitation and construction of road projects identified by the Federal Ministry of Works and Housing, Federal Capital Territory Administration, and the Ministry of Niger Delta Affairs | |
| Status: | 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 | |
| Distribution: | Fixed price public offering to all classes of investors | |
| Offer Opens: | Thursday, 16 December, 2021 | |
| Offer Closes: | Thursday, 23 December, 2021 | |
| Minimum Subscription: | Minimum of NGN10,000 (at NGN1,000/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) | |
| Listing: | Nigerian Exchange Limited and FMDQ Securities Exchange Limited |
Investors seeking to increase their bids are required to submit revised bids not later than Thursday, 23 December, 2021.
