Family Homes Funds Limited (FHFL) has opened application for provisional subscription to its N20 billion Sukuk as parties signed off the final documents on the issuance.
The net proceeds of the 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. In 2021, 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. Application list for the offer will close on September 5 2022.
The offer had been reviewed and certified by the Central Bank of Nigeria’s Financial Regulation Advisory Council of Experts (FRACE) and also duly 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.
Rental distribution will be semi-annually in arrears over the life of the Ijarah while repayment will be by the way of amortised principal repayment over the life of the Ijarah.
FHFL is a quasi-government entity owned by the Federal Government of Nigeria, through the Federal Ministry of Finance and the Nigeria Sovereign Investment Authority (NSIA). It was established to impact the quality of lives of Nigerians, particularly the poor and vulnerable.
FHFL’s fund raising is to support its focus on providing decent home as a pivot towards necessary comfort and security for citizens on low income. FHFL believes there is a need to bridge the infrastructural deficit of decent homes for Nigerians estimated to be at 22 million, particularly for those on low income.
As a social housing initiative, promoted by the government as part of its social intervention; FHFL plans to invest up to N1.3 trillion in the development of 500,000 affordable homes nationwide over the long-term. In the process, this is also expected to create up to 1.5 million jobs whilst enabling home ownership.
Family Homes Funds initiative is in line with the New Urban Agenda and the United Nations Sustainable Development Goal of promoting sustainable cities and communities, reducing poverty, promoting good health and well-being, economic growth, and reducing inequalities – Sustainable Goal No 11.