The Debt Management Office (DMO) on Monday offered N100 billion “Ijarah Sukuk’’ bonds for subscription at N1,000 per unit on behalf of the Federal Government.
It stated that the offer, which opened the same day it made the announcement, is of 10-year tenor due for maturity in December 2032 and the bonds were
issued by FGN Roads Sukuk Company1 PLC., through Greenwich Merchant Bank Ltd., Stanbic IBTC Capital Ltd. and Vetiva Capital Management Ltd.
The Office further disclosed that that proceeds would be invested solely in the construction and rehabilitation of certain strategic roads across the country.
The DMO further clarified: “Date of offer is Nov. 21; closing date is Nov. 29 while settlement date is Dec. 2. 2032.
“It is offered at N1,000 per unit subject to a minimum subscription 10,000 units and in multiples of 1,000 thereafter.
“Rental payment is made half-yearly while bullet payment (principal sum) will be made on the date of maturity.
“Proceeds will be used solely for the construction and rehabilitation of key road projects across the six geopolitical zones of the country”, it added.
According to the agency, the Ijarah Sukuk bond is backed by the full faith and credit of the Federal Government and also qualifies as securities in which trustees can invest under the Trustee Investment Act.
The DMO stated: “It also qualifies as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act and for tax exemption for pension funds administrators amongst other investors.
“It will be listed on the Nigerian Exchange Ltd. and the FMDQ Securities Exchange Ltd.
“It is classified as liquid asset by the CBN and certified by the Financial Regulations Advisory Council of Experts also of the CBN,’’ the DMO added.
The Ijarah Sukuk bond which was introduced in 2017 as part of the Federal Government’s debt management offerings, has generated over N612,557 billion so far which has helped in funding 71 roads and six bridges measuring 1,881 kilometres across the country.
The last Sukuk bond offer was issued in December 2021.
