As the application list for the N20 billion Sukuk by Family Homes Funds Limited (FHFL) closed yesterday, there is high expectation that long-term non-interest funding would further stimulate the development of affordable housing in Nigeria.
The net proceeds of the N20 billion Sukuk issuance will be used to finance development of affordable homes for low income households.
FHFL, through its special purpose vehicle, Family Homes Sukuk Issuance Programme Plc (FHSIP) is issuing a N20 billion Series II Ijarah Sukuk, to complete its N30 billion Sukuk issuance programme.
Last year, FHFL had accessed the market through its N10 billion seven-year 13 per cent Series 1 Ijara Lease Sukuk due 2028. The debut issue recorded an oversubscription of more than twice of the issue value.
The N20 billion issuance is the second-ever certified corporate Sukuk in Nigeria.
The offer had been reviewed and certified by the Central Bank of Nigeria’s Financial Regulation Advisory Council of Experts (FRACE) and also registered with the Securities & Exchange Commission (SEC).
FHFL is offering a seven-year fixed rate Sukuk Al-Ijarah to discerning investors through a book-building, pre-order system.
Minimum subscription to the issue is N10 million and thereafter in multiples of N1 million.
The Sukuk will, thereafter, be listed on the Nigerian Exchange (NGX) and FMDQ Securities Exchange.