The Family Homes Funds Limited says it has through its Family Homes Sukuk Issuance Program Plc successfully completed the issuance of N10bn to part finance its 7 years housing development initiative under the N30bn Sukuk Issuance Programme.
The 10bn is part of the 30bn budgeted to deliver 200,000 affordable homes to Nigerians by the year 2028.
This was disclosed yesterday by the Managing Director of Family Homes Funds, Mr. Femi Adewole, at the signing ceremony of FHFL issuance of SUKUK bond held at Transcorp Hilton, Abuja.
Adewole said that the Series I Sukuk’’ is the first ever Securities & Exchange Commission (SEC) registered corporate Sukuk to be issued in Nigeria and also the first ever corporate Sukuk certified by the Financial Regulation Advisory Council of Experts (FRACE) of the Central Bank of Nigeria (CBN). The FHF boss explained that the transaction also represents Family Homes’ debut in the Nigerian Debt Capital Markets. He said,The issuance was 2.1 times oversubscribed receiving significant interest from a wide range of high value and quality investors, including pension funds, ethical funds, fund managers, non-finance Islamic institutions, trustees, corporates and high net worth individuals.’’
He said that about 64 percent of the subscription were from Pension Funds, adding that the net proceeds from the SUKUK issuance will be used to finance new homes for Nigerians on low income across the nation.
Adewole noted that the deal will assist FHF in achieving its objective of developing up to 200,000 homes by December 20225.
“This is a landmark event in the unfolding history of a young organization with a vision to transform the housing market by making safe decent housing accessible to the overwhelming proportion of our population, particularly those on low income,’’ said the FHF MD.
Adewole commended the Minister of Finance, Madam Zainab Ahmed and the Board of Directors, Family Homes Funds for their guidance and supports in taking the FHF to a greater height.
“I do not forget your constant urging and guidance about the need to diversify our funding sources and to think out of the box. With the ever present support of the Board we are committed to doing just that. Today marks a significant first step on that journey.’’
He stressed that the great challenge of addressing access to affordable housing by the low income earners and the damaging effect it has on their quality of life could only be tackled through innovation and diligent service delivery.
