Nigeria Issues N100 Billion Sovereign Sukuk For Subscription

Nigeria Issues N100 Billion Sovereign Sukuk For Subscription

The Federal Government has begun the sale of its second tranche 7-year
N100 billion Sovereign Sukuk, the Debt Management Office (DMO), said on
Thursday.

The offer circular, which was obtained from its
website, said the seven year Islamic Sukuk, referred to as Ijarah is at a
rental rate of 15.74 per cent and would be due in 2025.

The bond, which is aimed at funding road infrastructure across the six geo-political zones, is payable semi-annually.

Subscription for the bond, which is guaranteed by the government, will close on Dec. 17.

The
circular said subscribers could purchase N1,000 per unit subject to a
minimum subscription of N10,000 and in multiples of N1,000 thereafter
with First Bank and Islamic wealth manager, Lotus Capital managing the
sale.

The DMO said it qualified as securities in which trustees
could invest under the Trustee Investment Act and as government
securities within the meaning of Company Income Tax Act (CITA) and
Personal Income Tax Act (PITA) for Tax Exemption for Pension Funds.

It
will also be listed on the Nigerian Stock Exchange (NSE) and on FMDQ
Over-The-Counter (OTC) platform and be classified as liquid asset by the
Central Bank of Nigeria (CBN).

It is also certified by the Financial Regulatory Advisory Council of Experts (FRACE) of the CBN, the circular said.

The
News Agency of Nigeria (NAN) recalls that the Federal Government had in
2017, raised a N100 billion 7-year debut Sukuk bond for the financing
of 25 road projects across the six geopolitical zones of the country.