The Debt Management Office (DMO) has listed the N162.557 billion, 7-year, FGN Ijarah Sukuk with a rental rate of 11.20 per cent on the floor of the Nigerian Exchange (NGX) Limited.
Ms Patience Oniha, Director-General, DMO, against the backdrop of the listing on Thursday, said that the third Sovereign Sukuk was issued on June 16, 2020.
Oniha said that the third Sovereign Sukuku will finance the rehabilitation and construction of key economic road projects across the six geopolitical zones in the country.
She also said that 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 still do so.
“We are excited that the trading of this Sukuk is permissible having fulfilled the condition for listing stipulated by the Financial Regulatory Advisory Council of Experts (FRACE) of the Central Bank of Nigeria (CBN).
“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.
“This is 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.
” This is arising out of sale of debt and exchange of currency not at par,” she said.
Recall that the NGX Ltd., welcomed the listing of the third Sovereign Sukuk on the bourse which would provide exit opportunity for existing investors.
Adding that it would further deepen the Nigerian capital market, particularly, the relatively nascent Sukuk market.
The issuance and subsequent listing of the Sovereign Sukuk on the NGX underscore the Federal Government’s drive for the development of critical infrastructure needed to unlock economic growth.
This can be achieved by leveraging innovative and cost-effective financing structures.
The Exchange continues to deliver on its commitment to provide a platform for issuers and investors to meet their investment objectives.
By enhancing access to the Federal Government and the private sector, NGX has promoted and supported the growth of the debt market in Nigeria with listings worth over N2.6 trillion in 2020.