FG is Selling ₦150 Billion Sukuk to Investors at 11.2%

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Selling Sukuk Bond Investors

FG is Selling ₦150 Billion Sukuk to Investors at 11.2%

The Federal Government has opened sale of its third tranche 7-year ₦150 billion Sovereign Sukuk, the Debt Management Office (DMO) said.

DMO stated that the seven year Islamic Sukuk, referred to as Ijarah, was at a rental rate of 11.2 percent and would be due in June 2027.

The offer document shows that interest will be paid to investors semi-annually, while the subscription is guaranteed by the government.

Based on the offer document, Sukuk sales is already open and it is expected to close on June 2, 2020.

The bond is on sale to finance key road infrastructure across the six geo-political zones.

The circular stated that subscribers could purchase ₦1,000 per unit subject to a minimum subscription of ₦10,000.

Thereafter, subscription could be made in multiples of ₦1,000 with First Bank and Islamic wealth manager, Lotus Capital managing the sale.

The DMO said the bond qualified as securities in which trustees could invest under the Trustee Investment Act.

Also, as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for Tax Exemption for Pension Funds, amongst other investors.

Sukuk will be listed on the Nigerian Stock Exchange and on FMDQ Over-The-Counter platform and be classified as liquid asset by the Central Bank of Nigeria.

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

FG is Selling ₦150 Billion Sukuk to Investors at 11.2%

 

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