FG commences N150b Sukuk bond offering at 15.75%

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FG commences N150b Sukuk bond offering at 15.75%
FG commences N150b Sukuk bond offering at 15.75%

The Nigerian Federal Government, through the Debt Management Office (DMO), has initiated the subscription process for a 10-year Ijarah Sukuk with a 15.75% annual interest rate, set to mature in October 2033.

This announcement was made by the DMO today, revealing that the subscription period will span nine days from October 3rd to 11th, with settlement scheduled for October 13th.

FGN announces 10 year Sukuk offering

The latest Federal Government of Nigeria (FGN) sukuk offering will have a ten-year tenure, with interest payments disbursed semi-annually.

According to the DMO, the sukuk issuance is made possible under the local loans (Registered Stock and Securities) Act, CAP. L17, and is facilitated by the FGN Road Sukuk Company (FGN RSC 1).

Greenwich Merchant Bank Limited, Stanbic IBTC Capital Limited, and Vetiva Capital Management Limited have been authorized to receive applications for a total of N150,000,000,000.00 for the 10-year Ijarah Sukuk due in October 2023, with a rental rate of 15.75% per annum.

The unit of subscription for this offering is N1000 per unit, with a minimum subscription requirement of N10,000 and additional multiples of N1000.

The sukuk is issued by the FGN Road Sukuk Company on behalf of the Federal Government of Nigeria, and rental payments will be made semi-annually, with a bullet redemption option available upon maturity.

The funds raised from this sukuk issuance will be dedicated exclusively to financing road construction projects across Nigeria’s six geographical zones.

The DMO has encouraged interested investors to contact their issuing houses for further information and guidance.