SAN FRANCISCO, May 21, (THEWILL) – Nigeria Thursday announced the issue of its third tranche 7-year N150 billion Sovereign Islamic Sukuk.
The Debt Management Office (DMO) which is issuing the bond on behalf of the federal government, said the seven year Islamic Sukuk (Ijarah), will be offered at 11.2% and would be redeemable in June 2027.
The bond, which was aimed at funding key road infrastructure across the six geo-political zones, was payable semi-annually. Subscription for the bond, guaranteed by the government, would close on June 2.
The circular on the DMO’s website, 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.
Nigeria 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. It raised another N100 billion in 2018 for a seven-year period for the same purpose, making it N200 billion raised so far via Sukuk bonds.