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DMO seeks advisers for Islamic bond, lists requirements

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Nigeria is looking for financial and legal advisers, trustee s and issuing firms to organise its Sukuk bond in the domestic debt market for 2021, the Debt Management Office (DMO) said on Monday.

Sukuk bond is an Islamic bond, to develop alternative sources of funding for Nigeria’s infrastructure gap.

In a public notice on its website, DMO said, “on behalf of the FGN, we wish to appoint Transaction Advisers for the Issuance of Sukuk in the domestic capital market through an open competitive bidding process.

“We, therefore, request for expression of interest/prequalification documents (EOI) from highly qualified and reputable organizations that fall under the four categories (issuing houses, financial advisers, trustees and legal advisers) and are willing to offer their services”

Explaining the expected role to be played, DMO said for Issuing houses, their functions would include preparation of the Prospectus; advising on marketing and distribution strategies, media campaigns, and investor meetings; and managing the Offering of the Sukuk.

The Issuing houses would also work with other transaction parties to prepare all the offering and contractual documents.”

READ ALSO: DMO offers two new FG savings bonds for subscription at N1,000

While financial advisers would help in the government in general structure of the transaction, review all offer and marketing documents, ensure compliance of transaction with non-interest financial principles and engage the authorised Exchanges for listing of the Sukuk.”

Also, trustees will perform the roles of delegate trustees to the Sukukholders and ensure that all the contractual obligations of the parties to the Sukuk Transaction are enforced.

“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.

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