DMO Lists N250.6b Ijarah Sovereign Sukuk On NGX
Debt Management Office (DMO), has listed N250 billion Ijarah Sovereign Sukuk due 2031 on the Nigerian Exchange (NGX).
The Ijarah Sovereign Sukuk which was issued on December 29, 2021, would finance the rehabilitation and construction of key economic road projects across the six geopolitical zones in the country.
This was made known by DMO, having fulfilled the conditions set by the Financial Regulatory Advisory Council of Experts (FRACE) of the Central Bank of Nigeria (CBN).
The CBN rule stipulates that trading in the instrument would only be permissible after the commencement of works on the road projects scheduled for construction through the Sukuk assets.
According to DMO, the 10 years’ 13 per cent proceeds of the Sukuk would be dedicated to road projects and will enable the government to achieve significant progress in bridging the infrastructure gap in Nigeria.
In 2021, DMO listed the N162.6billion seven-year Sukuk with a rental rate of 11.20 per cent on the Exchange to be used for financing the rehabilitation and construction of key road projects across the 36 states and the FCT.
The issuance and subsequent listing of the Sovereign Sukuk on the NGX platform underscore the Federal Government’s drive to develop the critical infrastructure needed to unlock economic growth, by leveraging innovative and cost-effective financing structures.
NGX welcomes this listing on the bourse, which will provide an exit opportunity for existing investors and further deepen the Nigerian capital market, particularly, the relatively nascent Sukuk market.
By enhancing access to the Federal Government and the private sector, NGX has promoted and supported the growth of the debt market in Nigeria with listings worth over N2trillion in 2021.
The Exchange continues to deliver on its commitment to provide a platform for issuers and investors to meet their investment objectives.
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