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FHF issues N10bn Sukuk bond

the net proceeds from the issue would finance new homes for Nigerians

The Family Homes Funds Limited (FHF), through its Family Homes Sukuk Issuance programme, has completed the issuance of a N10 billion Sukuk bond to fund housing projects for low-income earners.

The bond, which is due for seven years, is a 13 percent series 1 Ijara Lease Sukuk under the N30bn Sukuk Issuance Programme.

The Managing Director of FHF, Femi Adewole, during the signing of the MoU Fridayday in Abuja, said the bond is the first ever SEC-registered corporate Sukuk to be issued in Nigeria.

Adewole said the net proceeds from the issue would finance new homes for Nigerians on low income, contributing to its objective of developing up to 200,000 homes by December 2022.

He said the Book Build process for the transaction was launched on Friday, June 25, 2021, and was completed on Tuesday, July 6, 2021.

“The transaction was well received and attracted significant demand from a wide range of high value and quality investors. The total value of orders received during the Book Build was N21.3bn of the intended N10bn. The issuance was launched at a rental rate of 13% per annum,” he said.

He disclosed that 64% of the subscriptions were from Pension Funds.

The Minister of Finance, Zainab Ahmed, who was represented by the Permanent Secretary of the ministry, Aliyu Ahmed, commended the Board and Management of Family Homes Funds, and said the issuance would offer wider opportunities for millions of Nigerians who rely on FHF to own their home.