One year after the first tranche of N100 billion Islamic bond, Sukuk, was issued by the Federal Government, a second tranche of another N100bn is in the works and would be advertised in October this year.

The infrastructure bond, which was used to finance 25 federal roads across the country, was issued in September last year by the Debt Management Office (DMO).

Speaking on the sidelines of a two-day training on Sukuk Structurisation and Management organized by the Standing Committee for Economic and Commercial Cooperation of the Organization of the Islamic Cooperation (COMCEC) in partnership with the Federal Ministry of Finance, yesterday in Abuja, Ummahani Ahmad Amin, the MD/CEO, MetropolitanSkills Ltd, said the second tranche is expected in October 2018.

MetropolitanSkills Ltd is the facilitator of the training and also a consultant on Sukuk bonds issuance in Nigeria.

The training witnessed attendance from all the key regulators in Nigeria. There were about 25 participants from DMO, CBN, Ministry of Finance, Ministry of Works, Ministry of Transportation, Ministry of Agric and others. It also saw participants from the Gambia.

Ahmad Amin noted that the first Sukuk was extremely successful, which was why the FG is having the second one. “The Debt management Office (DMO), which is the originator has been very excited about it because all that is required has been done.

“All the contractors have been paid. This has never happened in the history of Nigeria for infrastructure. We are doing the second tranche now because the first tranche was successful and oversubscribed,” the MD/CEO noted.

She said N100bn was involved in the first tranche and the second tranche will be the same amount adding that just like the first tranche, the second tranche will also be dedicated to roads.

•Sourced from a Daily Trust report