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The DMO puts up FG Sukuk Bond on NSE today.
Nigeria’s Debt Management Office, DMO, listed a total of N162.5 billion 7-year Al Ijarah Sovereign Sukuk, due to mature in 2027 on the Nigerian Stock Exchange, NSE.
The Sukuk was raised at a rental rate of11.200%.
The FG launched the Islamic bond in June 2020 and this is third Sovereign Sukuk. Investors in the SUKUK 2020 bonds can now sell their investments and potential investors can also invest through the NSE.
The description for the Sukuk bond allows investors to make a profit if the assets are invested or rented. Interest rates do not apply with the Sukuk bond and this structure does not violate the Islamic laws forbidding interest fees.
The Sukuk bond matures by 2027.
The Buhari administration is issuing the Sukuk bonds at the NSE in an effort to ensure financial inclusion. Most investors will not partake in other kinds of investments due to religious belief but the SUKUK offers them a way out.
FGN hopes to attract more investors to its securities especially those who have reservations.
