Family Homes Funds limited through Family Homes Sukuk issuance program Plc successfully completed the issuance of N10billion 7year 13% series 1 Ijara Lease Sukuk due 2028 under the N30 billion Sukuk issuance program.

The series 1 Sukuk is the first-ever Stock Exchange Commission (SEC) registered corporate Sukuk to be issued in Nigeria. It is also the first-ever corporate Sukuk certified by the Financial Regulatory Advisory Council of Experts of the Central bank of Nigeria. The transaction also represents Family Homes debut in the Nigerian debt capital markets.

Speaking on the Sukuk Issuance, Chief Executive Officer of Family Homes, Femi Adewole said a total of 40,000 housing units is the target this year by Family Homes but would start with the delivery of 5,000 in the first tranche with the N10 billion bonds issued.

‘‘We are very proud of this landmark transaction, which is the first-ever certified corporate Sukuk issued in Nigeria.

‘‘The domestic debt capital market has given us the opportunity to further diversify our funding sources and provided the necessary support for our goal of providing affordable homes across Nigeria.

‘‘The strong support for this transaction, given the challenging environment, reflects the depth of the market, and investor confidence in Family Homes Fund’s long-term strategy and management team.

‘‘The transaction was well received and attracted significant demand from a wide range of high-value and quality investors including pension funds. Ethical funds, fund managers, non-finance Islamic Institutions, trustees, corporate and high net worth individuals.

‘‘The total value of orders received during the Book Build was N21.3 billion “representing a 2.1 times oversubscriptions) of the intended n10 billion. The issuance was launched at a rental rate of N13% per annum.

‘‘Notwithstanding current market dynamics and volatility, this debut transaction had tremendous support from the debt capital market. The series 1 Sukuk issuance reinforces the company’s commitment to facilitate the provision of affordable homes and diversifying its funding sources, as well as the resilience of the domestic debt capital market.’’

The ED said Family Homes will deploy the net proceeds to finance and develop affordable homes for low-income earners.