Islamic bond: DMO seeks advisers, list requirements
Nigeria’s Debt Management Office (DMO) announced on Monday that it is seeking financial and legal advisors, trustees, and issuing firms to help it organize its Sukuk bond in the domestic debt market for 2021.
Sukuk bonds are Islamic bonds used to build alternative funding sources for Nigeria’s infrastructure deficit.
“On behalf of the FGN, we wish to nominate Transaction Advisers for the Issuance of Sukuk in the domestic capital market through an open competitive bidding process,” DMO said in a public notice on its website.
“As a result, we are seeking expressions of interest/prequalification documents (EOI) from highly eligible and reputable organizations that fall into one of the four categories (issuing houses, financial advisors, trustees, and legal advisers) and are willing to provide their services.”
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DMO explained that the Issuing Houses’ responsibilities will include preparing the Prospectus, consulting on marketing and distribution plans, advertising promotions, and investor meetings, as well as overseeing the Sukuk Offering.
The issuing houses must also collaborate with other parties in the agreement to prepare all of the offering and contractual documents.”
While financial advisors will assist the government in determining the general structure of the deal, reviewing all bid and marketing documents, ensuring compliance with non-interest financial standards, and engaging the approved Exchanges for Sukuk listing.”
Trustees will also serve as delegate trustees for the Sukukholders, ensuring that all of the parties to the Sukuk Transaction’s contractual obligations are met.
“And Legal advisers will provide legal advice in all areas of the transaction, including drafting and reviewing all transaction and offer documents in conjunction with other transaction parties.”
DMO further stressed that all applicants must possess proven expertise and track record in the issuance of securities and must meet the underlisted general mandatory eligibility requirements posted on its website.
Since 2017, DMO has issued three Sukuk bonds. The first was in September 2017 which was N100 billion followed by another N100 billion Sukuk in 2018.
In March, last month, it listed another N162.557 billion on the Nigerian Stock Exchange.
