DMO lists N162.56bn Sukuk to finance Nigeria’s key projects

The Debt Management Office, on Thursday, listed the N162.557bn, seven-year, FGN Ijarah Sukuk with a rental rate of 11.20 per cent on the floor of the Nigerian Exchange Limited.

The NGX disclosed this in a statement made available to Financial Street.

It explained that the third sovereign Sukuk was issued on June 16, 2020, and would 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 NGX said.

Commenting on the listing, the Director-General, DMO, Ms 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 of the Central Bank of Nigeria.

“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,”

Oniha explained that this was 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 the sale of debt and exchange of currency not at par.

The NGX welcomed the listing of the Sukuk on the bourse, saying it would provide an exit opportunity for existing investors and further deepen the Nigerian capital market, particularly the relatively nascent Sukuk market.
Ehime Alex
Ehime Alex
Ehime Alex reports the Capital Market, Energy, and ICT. He is a skilled webmaster and digital media enthusiast.

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