…As FHFL completes issuance of N10bn first ever Sukuk for housing
The President Muhammadu Buhari’s administration has attached great importance to provision of low income housing, the Minister of Finance, Mrs. Zainab Ahmed has said.
This is as Family Homes Funds Limited, FHFL on Thursday completed the issuance of N10,000,000,000 Sukuk fund.
The fund which is a 13% Series 1 Ijara Lease Sukuk due 2028 under the N30,000,000,000 Sukuk Issuance Programme is the first of its kind where funds for housing programme is raised from the capital market.
Ahmed who spoke at the signing ceremony for FHF Issuance of N10 billion series 1 Ijara lease Sukuk, said social housing remains a direct way of improving the lives of Nigerians as social housing is one of the strategic pillars of our economic development programmes.
The minister also said provision of affordable housing remains a direct way of improving the lives of Nigerians.
Ahmed who was represented by the Permanent Secretary, Ministry of Finance, Alhaji Aliyu Ahmed said it was the desire to bridge the country’s housing gap that has informed the kind of investment we are making across the country through institutions like the Family Homes Funds.
She said, “As we know, housing is one of the key indices for measuring development in any country. From the onset, housing for Nigerians, especially those on low-income has been a major priority for President Muhammadu Buhari’s government. Social housing is one of the strategic pillars of our economic development programmes, and a direct way of improving the lives of Nigerians. This is what has informed the kind of investment we are making across the country through institutions like the Family Homes Funds.
“Tasked with this important responsibility, Family Homes Funds, with funding from the Federal Government has so far been able to finance the development of affordable homes across several states in Nigeria, and it is important that they are strengthening their capabilities with this Issuance.
“Sustainable funding is very critical for what Family Homes Funds does, and the interest that this Issuance has generated is very significant for what the future of funding in the housing sector may look like. The kind of results we are seeking can be hastened through efforts like this, where the private and public sectors can blend in through investments and other forms of partnership.
“As our resolve towards achieving these plans are unshaken, a lot more activities like this are very important to compliment what is happening in the public sector.”
Also, the Chief Executive Officer of FHF, Femi Adewole said the Sukuk has availed them the opportunity to facilitate the provision of affordable houses and diversify its funding sources, as well as the resilience of the domestic debt capital market.
Adewole said the signing which is the first ever certified corporate Sukuk issued in Nigeria is a landmark transaction.
“We are very proud of this landmark transaction, which is the first ever certified corporate Sukuk issued in Nigeria. The domestic debt capital has given us the opportunity to further diversify their funding sources and provided the necessary support for our goal of providing affordable homes across Nigeria,” he said.
Speaking at the event, Chairman, Board of Directors, FHFL, Suleiman Barau said with the issuance on a N30bn Sukuk Bond, FHF’s commitment to financing the development of affordable housing in Nigeria is further strengthened and presents a great source of hope for average Nigerians seeking a home of their own.
Barau said “the impressive rate of subscription and participation by a diverse range of investors demonstrate the high level of investor confidence in FHFs, particularly because of the progress it is making in the affordable housing space in Nigeria”.
