The Federal government through the Debt Management Office (DMO) has opened offers for subscriptions for 10 years of Ijarah Sukuk at 15.75% interest per annum due in October 2033.
DMO explained on Tuesday that the subscription period is billed to last for nine days running from October 3rd and 11th with the settlement date being October 13th.
DMO said:“Under the local loans (Registered Stock and Securities) Act, CAP. L17, on the authority of the Federal Government of Nigeria FGN road FGN Road Sukuk Company (FGN RSC 1) offers subscriptions through Greenwich Merchant Bank Limited, Stanbic IBTC Capital Limited, and Vetiva Capital Management Limited are authorized to receive applications for N150,000,000,000.00 10-year Ijarah Sukuk due October 2023. Rental rate 15.75% per annum”
Unit of subscription- the unit of subscription is N1000 per unit subject to a minimum subscription of N10,000 and in multiples of N1000 thereafter.
Issuer- the sukuk is being issued by the FGN road sukuk company on behalf of the Federal Government of Nigeria.
The rental payments are repayable for half a year. However, bullet redemption can be paid on maturity.
The DMO also stated that funds raised from the offer will be used solely for road construction across the six zones in the country.
