The Debt Management Office (DMO), on behalf of the Federal Government, has reminded the general public that the offer for subscription to the N150 billion FGN Ijara Sukuk Bond will close on Tuesday June 2nd, 2020.
The offer for subscription was announced some days ago by the DMO, as Nairametrics reported. Below are the details of the offering.
The Auction: N150, 000,000,000 – Rental Rate of 11.20% per annum IJORA SUKUK FGN JUNE 2027 (7-Yr Opening)
Arranger: FBNQuest Mechant Bank Limited and Lotus Financial Services Limited.
Opening Date: May 21, 2020
Closing Date: June 2, 2020
Settlement Date: June 9, 2020
Summary of the Offer
Instrument Type: Ijarah (Lease) Sukuk
Issuer: FGN Roads Sukuk Company 1 Plc. on behalf of the Federal Government of Nigeria.
Units of Sale: N1,000 per unit subject to a minimum Subscription of N10,000 and in multiples of N1,000 thereafter.
Rental Payment: Payable Half Yearly.
Redemption: Bullet repayment on the date of maturity
Use of Proceeds: Proceeds will be used solely for the construction and rehabilitation of key roads across the six geopolitical zones of the country.
Sukuk indicates ownership of an asset. The assets that back Sukuk are compliant with Shariah. In other words, such assets adhere to the Islamic prohibitions on gambling, alcohol, tobacco, narcotics, and adult entertainment products and services.
Sukuk notes pay a fixed percentage return as a profit-sharing percentage of the underlying assets’ revenues.