The Federal Government on Thursday commenced the sale of N150bn seven-year Sukuk bond offer meant for the development of road infrastructure in different parts of the country.
The Debt Management Office disclosed this on its website adding that the offer would close in June 2, 2022 with a settlement date of June 9, 2020.
It disclosed that the N150bn seven-year Ijarah Sukuk due for June 2027 had a rental rate of 11.2 per cent per annum.
According to the DMO, the Ijarah (lease) Sukuk had a half yearly rental payment, and bullet payment on the date of maturity.
“Proceeds will be used solely for the construction and rehabilitation of key roads across the six geopolitical zones of the country,” it stated.
The Sukuk bond would be offered for subscription through FBNQuest Merchant Bank Limited and Lotus Financial Services Limited.
It had a unit sales of N1,000 per unit subject to a minimum of N10,000 and in multiple of N1,000 thereafter.
According to the DMO, the FGN Roads Sukuk Company 1 Plc is the issuer of the bond on behalf of the Federal Government, and it has appointed the receiving banks and placement agents for the offer.
The DMO said the offer would be listed on the Nigerian Stock Exchange and FMDQ OTC Securities Exchange, adding that the bond was backed by the full faith and credit of the Federal Government.