The Federal government through the Debt Management Office (DMO) has opened offers for subscriptions for 10 years of Ijarah Sukuk at 15.75% interest per annum due in October 2033.
The offer was disclosed in an official announcement from the DMO today. The subscription period is billed to last for 9 days running from October 3rd and 11th with the settlement date being October 13th.
The latest FGN sukuk will mature in October 2033, lasting for ten years as interest will be paid every half year.
The statement from the DMO reads,
- “Under the local loans (Registered Stock and Securities) Act, CAP. L17, on the authority of the Federal Government of Nigeria FGN road FGN Road Sukuk Company (FGN RSC 1) offers subscriptions through Greenwich Merchant Bank Limited, Stanbic IBTC Capital Limited, and Vetiva Capital Management Limited are authorized to receive applications for N150,000,000,000.00 10-year Ijarah Sukuk due October 2023. Rental rate 15.75% per annum”
Terms of the Sukuk
Unit of subscription- the unit of subscription is N1000 per unit subject to a minimum subscription of N10,000 and in multiples of N1000 thereafter.
Issuer- the sukuk is being issued by the FGN road sukuk company on behalf of the Federal Government of Nigeria.
The rental payments are repayable for half a year. However, bullet redemption can be paid on maturity.
The DMO also stated that funds raised from the offer will be used solely for road construction across the six zones in the country.
The DMO called on interested investors to call their issues houses for further information and advice.
About FGN sukuk
Sukuk serves as a fixed-income capital market tool, authorized by the Debt Management Office (DMO) on behalf of the federal government, for funding road projects within the nation.
Let us build roads that would last for more than ten years instead of the current 7 years..We are not expanding infrastructure. We are only moving in circles
.
How can I purchase the bond?