FG Offers N150bn Sukuk Bond at N1,000 Per Unit

Federal Government has commenced the sale of Ijarah Sukuk bond valued at N150 billion.
The Sukuk is a Sharia-compliant instrument that represents the interests of the owner in an asset or pool of assets and mainly invested in infrastructure such as road projects.
Debt Management Office (DMO) said in a statement on Tuesday in Abuja that the Sukuk were offered at N1,000 per unit, subject to a minimum subscription of N10,000 and in multiples of N1,000 thereafter.
The Sukuk is issued by the DMO through Roads Sukuk Company PLC on behalf of the Federal Government.
According to the statement, rental payment will be made half-yearly and bullet repayment will be done on the date of maturity.
The DMO noted that the proceeds would be used solely for the construction and rehabilitation of key road projects and bridges across the six geopolitical zones of the country.
It hinted that the Ijarah Sukuk was backed by the full faith and credit of the Federal Government, adding that it will be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited.
The DMO stated that the Sukuk qualified as government securities within the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds and other investors.
It was also classified as liquid asset by the Central Bank of Nigeria (CBN) and certified by the Financial Regulation Advisory Council.