Dipo Olowookere
By Dipo Olowookere
Nigeria is returning to the Sukuk market to offer for sale N250 billion worth of the Islamic financial leasing instrument to investors.
The exercise is to be conducted by the Debt Management Office (DMO) and it would be from Thursday, December 16, 2021, to Wednesday, December 22, 2021, according to a circular issued by the agency.
In September 2017, the DMO started the issuance of sovereign Sukuk to raise funds aimed to support the development of infrastructure, promote financial inclusion and deepen the domestic securities market.
The Sukuk is a direct, unconditional and unsubordinated obligation of the Federal Government of Nigeria (FGN) which ranks pari passu with other outstanding present and future unsecured obligations of the government.
The last exercise was in June 2020 and this current issuance, the fourth in the series, is a 10-year tenor at a coupon rate of 12.80 per cent per annum to be paid two times a year, according to the disclosure.
As with previous issuances, the proceeds of this N250 billion Sukuk will be used to finance the rehabilitation and construction of road projects, which have been identified by the Federal Ministry of Works and Housing, Federal Capital Territory Administration and the Ministry of Niger Delta Affairs.
The debt office said the minimum subscription is N10,000 at N1,000 per unit and in multiples of N1,000 thereafter. After the issuance, the Sukuk Al Ijarah would be listed on the trading platforms of the Nigerian Exchange (NGX) Limited and the FMDQ Securities Exchange.
