The Debt Management Office (DMO) has initiated subscriptions for a 10-year Ijarah Sukuk with a 15.75% interest per annum, due in October 2033. The subscription period spans from October 3rd to 11th, with settlement scheduled for October 13th. The latest FGN Sukuk aims to raise funds for road construction across the country’s six zones. The Sukuk serves as a fixed-income capital market tool, providing financing for vital road projects.
Key Points:
- Offer Details: The 10-year Ijarah Sukuk offers an interest rate of 15.75% per annum, maturing in October 2033. Rental payments will be made semi-annually.
- Subscription Terms: The unit of subscription is set at N1000, with a minimum subscription of N10,000 and subsequent multiples of N1000.
- Issuer: The Sukuk is issued by the FGN Road Sukuk Company on behalf of the Federal Government of Nigeria.
- Utilization of Funds: The funds raised from this Sukuk will be exclusively allocated for road construction projects spanning all six geopolitical zones in Nigeria.
- Purpose of Sukuk: Sukuk serves as a vital fixed-income capital market tool, authorized by the DMO, to fund essential road projects within Nigeria.
Analysis: The launch of the 10-year Ijarah Sukuk at a competitive interest rate demonstrates the government’s commitment to funding critical infrastructure projects. This Sukuk issuance not only provides investment opportunities but also supports the development and maintenance of key transportation networks, which are essential for economic growth and prosperity in Nigeria. Investors looking for fixed-income instruments with specific societal impact may find this Sukuk offering attractive. It’s advisable for interested parties to consult their issuing houses for further guidance and information.
