Nigerian Government Invites Citizens to Buy Bonds as DMO lists N250 billion Sukuk on Nigerian Exchange
- The Nigerian government through the Debt Management Office (DMO) has listed a N250 billion Sovereign Sukuk on the Nigeria Exchange Limited
- The Sukuk has a 2031 maturity date with a 13 per cent annual yield which is to be used to fund road projects across the country
- This is after the DMO met requirements set by the Central Bank of Nigeria and the Financial Financial Regulatory Council of Experts (FRACE)
The Debt Management Office (DMO) has listed the N250 billion 1o-year Ijara Sovereign Sukuk on 13 per cent due in 2031, on the Nigerian Exchange Limited (NGX).
The Ijara Sovereign Sukuk was listed after it met the requirements set by the Financial Regulatory Advisory Council of Experts (FRACE) of the Central Bank of Nigeria (CBN).
Source: UGC
Bond meant to fund road projects in Nigeria
The CBN requirement states that trading in the instrument would only be allowed after the commencement of projects on the roads scheduled for construction of the Sukuk assets.
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The DMO stated that the listing will promote its trading and give liquidity to investors, by deepening the Nigerian capital market.
The Ijara Sukuk was issued on December 29, 2021, and would fund the repair of roads across the six geo-political zones in Nigeria, multiple media reports said.
The debt management agency stated that the proceeds from the bond will be devoted to road projects and would allow the Nigerian government to reach significant progress in bridging the infrastructure gap in the country, a Nairametrics report says.
Last year, the DMO documented the N162.6 billion seven-year Sukuk which has a rental of 11.20 per cent on the Exchange to be solely used to finance the repair and construction of major road projects across all the states of Nigeria, including Abuja.
Nigerian government seeks N250bn from citizens this December for road projects, full repayment in 10 years
Legit.ng reported that The Debt Management Office (DMO) has opened offer for a new N250 billion Sovereign Sukuk bond on behalf of the Federal Government for road infrastructure across the country.
This bond, a fourth to be issued by the DMO as a tenure of ten (10) years at a rental income of 12.80 percent per annum, to be paid half-yearly.
Bonds are simply a term for loans that you give to the Federal Government, State Government, Companies.
Source: Legit.ng
