As part of effort to secure funding for the development of social infrastructure across the country, the Debt Management Office (DMO) has listed N162.557billion, 7-year, FGN Ijarah Sukuk with a rental rate of 11.20% on the floor of the Nigerian Exchange (NGX) Limited.
In a statement the Exchange noted that the third Sovereign Sukuk was issued on June 16, 2020, and will finance the rehabilitation and construction of key economic road projects across the six geopolitical zones in the country.
“With this listing, members of the general public who invested in the 2020 Sukuk bonds can now sell their investments and those who wish to invest in Sukuk can now do so.” The statement read.
On the listing of the third Sovereign Sukuk, the Director-General, DMO, Patience Oniha said: “We are excited that the trading of this Sukuk is now permissible having fulfilled the condition for listing stipulated by the Financial Regulatory Advisory Council of Experts (FRACE) of the Central Bank of Nigeria (CBN)”.
According to the DMO boss, the FGN Sukuk may only be listed for trading on relevant exchanges after the commencement of works on the Road project for the construction of the Sukuk assets. “This is in order to create a pool of assets consisting of non-financial and financial assets that could be freely traded while avoiding the prohibition of dealing in interest-based transactions arising out of sale of debt and exchange of currency not at par.”
Director-General, DMO, Patience Oniha
The statement noted that so far, NGX has promoted and supported the growth of the debt market in Nigeria with listings worth over N2.6Tn in 2020. “Issuance and subsequent listing of the Sovereign Sukuk on the NGX underscore the Federal Government’s drive for the development of critical infrastructure needed to unlock economic growth, by leveraging innovative and cost-effective financing structures”.