FG begins sale of N150bn Sukuk bond at 11.2%

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The Federal Government has begun the sale of its third tranche 7-year N150 billion Sukuk bond at a rental rate of 11.2 percent.

The Debt Management Office (DM0) in a circular, which was obtained from its website, said the seven year Islamic Sukuk, referred to as Ijarah would be due in June 2027.

The circular said subscribers could purchase N1,000 per unit subject to a minimum subscription of N10,000 and in multiples of N1,000 thereafter with First Bank and Islamic wealth manager, Lotus Capital managing the sale.

The DMO firther said it qualified as securities in which trustees could invest under the Trustee Investment Act and as government securities within the meaning of Company Income Tax Act (“CITA”) and Personal Income Tax Act (“PITA”) for Tax Exemption for Pension Funds, amongst other investors.

“It would also be listed on the Nigerian Stock Exchange (NSE) and on FMDQ Over-The-Counter (OTC) platform and be classified as liquid asset by the Central Bank of Nigeria (CBN). It is also certified by the Financial Regulatory Advisory Council of Experts (FRACE) of the CBN,” the DMO added.

It would be recalled that the Federal Government had in 2017 raised a N100 billion seven-year debut Sukuk bond for the financing of 25 road projects across the six geopolitical zones of the country.

Peace PIAK

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