On Monday, the Federal Government issued 100 billion Naira worth of “Ijarah Sukuk” bonds for subscription at a price of N1,000 per unit.
The offer’s 10-year tenor and December 2032 maturity date were declared in Abuja.
FGN Roads Sukuk Company1 PLC, Greenwich Merchant Bank Ltd, Stanbic IBTC Capital Ltd, and Vetiva Capital Management Ltd are the issuers of the bonds.
The DMO noted that the money raised would only be used to build new roads around the nation and repair old ones.
“Date of the offer is Nov. 21; the closing date is Nov. 29 while the settlement date is Dec. 2. 2032.
“It is offered at N1,000 per unit subject to a minimum subscription of 10,000 units and in multiples of 1,000 thereafter.
“Rental payment is made half-yearly while bullet payment (principal sum) will be made on the date of maturity.
“Proceeds will be used solely for the construction and rehabilitation of key road projects across the country’s six geopolitical zones,’’ the DMO stated.
It added that the full faith and credit of the Federal Government backs the Ijarah Sukuk bond.
“It qualifies as securities in which trustees can invest under the Trustee Investment Act.
“It also qualifies as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act and for tax exemption for pension funds administrators amongst other investors.
“It will be listed on the Nigerian Exchange Ltd. and the FMDQ Securities Exchange Ltd.
“It is classified as a liquid asset by the CBN and certified by the Financial Regulations Advisory Council of Experts also of the CBN,’’ the DMO stated.
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