The Debt Management Office (DMO) has listed the N250billion, 10-year 13% Ijarah Sovereign Sukuk due 2031, on Nigerian Exchange Limited (NGX), on Tuesday, 5 July 2022.
The Nigerian Exchange said it fulfilled the conditions set by the Financial Regulatory Advisory Council of Experts (FRACE) of the Central Bank of Nigeria, which stipulated 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.
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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, according to the DMO. It said proceeds of the Sukuk will 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 N162.6b seven-year Sukuk with a rental rate of 11.20 percent on the Exchange to be used for financing the rehabilitation and construction of key road projects across the 36 states and the FCT.
NGX said it welcomes listing of the Sukuk on the bourse. It added that it 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 N2 trillion in 2021.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
