Nigeria begins sale of N100b Sukuk

Nigeria has begun the sale of its second tranche 7-year N100 billion Sovereign Sukuk, the Debt Management Office (DMO), has said.
The offer circular, which was obtained from its website, said the seven year Islamic Sukuk, referred to as Ijarah is at a rental rate of 15.74 per cent and would be due in 2025.
The bond, which is aimed at funding road infrastructure across the six geo-political zones, is payable semi-annually.
Subscription for the bond, which is guaranteed by the government, will close on Dec. 17.
The circular said subscribers could purchase N1,000 per unit subject to a minimum subscription of N10,000 and in multiples of N1,000 thereafter with First Bank and Islamic wealth manager, Lotus Capital managing the sale.
The DMO said it qualified as securities in which trustees could invest under the Trustee Investment Act and as government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for Tax Exemption for Pension Funds.
It will also be listed on the Nigerian Stock Exchange (NSE) and on FMDQ Over-The-Counter (OTC) platform and be classified as liquid asset by the Central Bank of Nigeria (CBN).
It is also certified by the Financial Regulatory Advisory Council of Experts (FRACE) of the CBN, the circular said.
The Federal Government had in 2017, raised a N100 billion 7-year debut Sukuk bond for the financing of 25 road projects across the six geopolitical zones of the country.