Nigeria’s Debt Management Office (DMO) has listed the N250 billion (about $609 million) 10-year 13% Ijarah Sovereign Sukuk due in 2031, on the Nigerian Exchange Limited (NGX), on Tuesday, July 5, 2022.
The statement by the NGX on Tuesday in Lagos said that the Ijarah Sovereign Sukuk was successfully listed on NGX, having fulfilled the conditions set by the Financial Regulatory Advisory Council of Experts (FRACE) of the Central Bank of Nigeria, which stipulated that trading in the instrument would only be permissible after the commencement of works on the road projects scheduled for construction through the Sukuk assets.
It added that the listing will facilitate its trading and provide liquidity to investors, further deepening the Nigerian capital market.
According to the statement, the Ijarah Sovereign Sukuk, which was issued on December 29, 2021, would finance the rehabilitation and construction of key economic road projects across the six geopolitical zones in Nigeria.
The DMO explained that the proceeds of the Sukuk will be dedicated to road projects and will enable the Nigerian government to achieve significant progress in bridging the infrastructure gap in the country.
It recalled that in 2021, the DMO listed the N162.6b seven-year Sukuk with a rental rate of 11.20 percent on the Exchange to be used for financing the rehabilitation and construction of key road projects across the 36 states and the Federal Capital Territory.
The issuance and subsequent listing of the Sovereign Sukuk on the NGX platform underscore the Federal Government’s drive to develop the critical infrastructure needed to unlock economic growth, by leveraging innovative and cost-effective financing structures.
“The NGX welcomes this listing on the bourse, which will provide an exit opportunity for existing investors and further deepen the Nigerian capital market, particularly, the relatively nascent Sukuk market.
“By enhancing access to the Federal Government and the private sector, NGX has promoted and supported the growth of the debt market in Nigeria with listings worth over N2 trillion in 2021. The Exchange continues to deliver on its commitment to provide a platform for issuers and investors to meet their investment objectives,” the statement added.
GIK/APA