Nigeria’s Debt Management Office (DMO) on Tuesday, July 23, 2019, listed the second ₦100bn, Seven-Year, FGN Sukuk due to mature in 2025 on The Nigerian Stock Exchange.
The FGN Sukuk is due to mature in 2025, and was raised at a rental rate of 15.743 percent, a 73 basis point discount from the 16.47 percent rental rate of the maiden issuance listed in April 2018.
Sukuk bonds are structured to generate returns to ethical investors without infringing on the Islamic principles, which forbid interest payments. It represents an ownership interest in the asset to be financed rather than in a debt obligation.
Commenting on the Listing, Head, Trading Business Division, NSE, Mr. Jude Chiemeka said, “ At the Exchange, we believe enhancing access to capital for the Federal Government and the private sector is key to national economic growth. This is the motivation behind our commitment to promote and support the growth of the debt market in Nigeria.
According to DMO, the FGN Sukuk aims to promote financial inclusion and deepen of the investor base for FGN securities. It will be deployed to financing infrastructure, in keeping with the Government’s commitment to bridging the infrastructural gap across the country.