THE Debt Management Office (DMO) has opened the offer for a new N250 billion Sovereign Sukuk bond being raised by the Federal Government for development of road infrastructure across the country.
This bond, a fourth to be issued by the DMO since its first Sukuk issuance in September 2017, is for a tenure of ten (10) years at a rental income of 12.80 percent per annum, to be paid half-yearly.
The offer at N1,000 per unit is subject to a minimum subscription of N10,000 and in multiples of N1,000 thereafter.
The offer opens yesterday and closes on December 24, the settlement date being December 24.
According to DMO the proceeds from the offer would be used solely for the construction and rehabilitation of key road projects across the six geopolitical zones of the country.
A statement on its website reads, “The impact of the Sovereign Sukuk on road infrastructure in terms of job creation, travel time, safety and movement of goods have made the Sukuk a beneficial financial instrument for financing economic growth and development.
“Institutions, individuals, associations and cooperative societies can invest in the Sovereign Sukuk thereby supporting the DMO towards raising project-tied funds and promoting financial inclusion.”
The DMO commenced the issuance of Sukuk in September 2017 as a strategic initiative to support the development of infrastructure, promote financial inclusion and deepen the domestic securities market.
Subsequent to the debut Sovereign Sukuk in 2017 in which N100 billion was raised to finance the rehabilitation and construction of twenty-five (25) road projects across the six (6) geopolitical zones, the DMO issued a Sukuk for N100 billion in 2018 and another for N162.557 billion in 2020.
