Dear Esteemed Investor,
The Debt Management Office Nigeria (“DMO”) has mandated Greenwich Merchant Bank Limited, Stanbic IBTC Capital Limited and Vetiva Capital Management Limited as Issuing Houses for the issuance of the Federal Government of Nigeria’s (“FGN” or the “Issuer”) Series IV Sovereign Sukuk of up to NGN250 Billion (the “Issue” or “the Offer’’). We are pleased to announce that the Offer is now open and scheduled to close at 2.00pm on Wednesday, December 22, 2021.
The DMO commenced the issuance of Sovereign Sukuk in September 2017 as a strategic initiative to support the development of 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, which have been identified by the Federal Ministry of Works and Housing, Federal Capital Territory Administration and the Ministry of Niger Delta Affairs.
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 Houses | Greenwich Merchant Bank Limited, Stanbic IBTC Capital Limited and Vetiva Capital Management Limited |
| Financial Adviser | Buraq Capital Limited |
| Issue Size | Up to NGN250 billion |
| Tenor | 10 years |
| Rate | 12.8% |
| 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 | Wednesday, 22 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 |
Kindly access the supporting Issue documents via DMO Sovereign Sukuk Series IV Issuance for your perusal:
- FGN Sukuk IV Prospectus;
- DMO Sukuk Series IV Subscription Form for Qualified Institutional Investors (QIIs);
- DMO Sukuk Series IV Subscription Form for Retail and other Non-QIIs;
- Frequently Asked Questions (FAQ) – All you need to know about the 4th FGN Sukuk; and
- Investor Presentation.
Please do not hesitate to contact us if you require any additional information.
KEY CONTACTS:
| Kenneth Ero | Kemi Adetona | Okonkwo Chiamaka | |
| Head, Investment Banking | Capital Markets | Capital Markets | |
| Tel: 08055029708 Email: [email protected] | Tel: 08151711272 Email: [email protected] | Tel: 09053864556 Email: [email protected] |
Thank you
