DMO offers N100 billion “Sukuk” bonds at N1,000 per unit for roads construction
The Debt Management Office (DMO) offered N100 billion “Ijarah Sukuk” bonds for subscription at N1,000 per unit on Monday on behalf of the federal government.
It stated in Abuja that the offer is of a 10-year tenor due for maturity in December 2032.
The bonds are issued by FGN Roads Sukuk Company1 PLC., through Greenwich Merchant Bank Ltd., Stanbic IBTC Capital Ltd. and Vetiva Capital Management Ltd.
The DMO added that proceeds would be invested solely in constructing and rehabilitating certain strategic roads across the country.
“Date of the offer is November 21; the closing date is November 29, while the settlement date is December 2, 2032.
“It is offered at N1,000 per unit subject to a minimum subscription of 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 country’s six geopolitical zones,” the DMO stated.
It added that the full faith and credit of the federal government backs the Ijarah Sukuk bond.
“It qualifies as securities in which trustees can invest under the Trustee Investment Act.
“It also qualifies as government securities within the meaning of the 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 a liquid asset by the CBN and certified by the Financial Regulations Advisory Council of Experts also of the CBN,” the DMO stated.
The Ijarah Sukuk bonds, like the FGN bonds and FGN savings bonds, constitute part of the domestic component of government borrowings.
Since it was introduced in 2017, it has provided N612,557 billion for the Federal Government, which has helped in funding 71 roads and six bridges measuring 1,881 kilometres across the country.
Sukuk bond was last issued in December. 2021.
(NAN)
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette
Rights
Ekiti court sentences two armed robbers to death by hanging
The convicts rejected five different lawyers arranged for them and chose to defend themselves.
Sport
World Cup: Nigerian-born Saka shines as England hammer Iran
England beat Iran 6-2 in their opening Group B match at the ongoing Qatar World Cup on Monday.
Hot news Home top
76 victims rescued from bandits in Kaduna: Police
Mr Jalige noted that the event occurred at about 11:00 p.m. on Friday.
States
Police arraign Benue man over armed robbery of neighbour, girlfriend
Ms Ishaya said that during the investigation, Mr Friday was arrested and one locally made revolver pistol was recovered from him.
Health
Doctors in Cross River begin strike over kidnap of colleagues
The association urged Governor Ben Ayade to activate all necessary mechanisms to ensure that the menace of kidnapping was nipped in the bud.
Showbiz
Refurbished National Theatre game hanger in creative industry
Completed in 1976, in preparation for the Festival of Arts and Culture (FESTAC) held in 1977, the National Theatre was abandoned for decades to rot away.
