The Debt Management Office (DMO), on , on Tuesday, July 5, 2022, listed the N250bn, 10-year 13% Ijarah Sovereign Sukuk due 2031, on the Nigerian Exchange Limited (NGX).
According to DMO, the Ijarah Sovereign Sukuk was issued on December 29, 2021, and the proceeds would by used to finance the rehabilitation and construction of key economic road projects across the six geopolitical zones in the country, thereby enabling the government achieve significant progress in bridging the country’s infrastructure gap.
The listing, the NGX noted in a statement followed its meeting conditions set by the Financial Regulatory Advisory Council of Experts (FRACE) of the Central Bank of Nigeria (CBN), that trading in the instrument will only start after the commencement of works on the road projects scheduled for construction with the Sukuk proceeds.
According to the NGX statement, “this listing will facilitate its trading and provide liquidity to investors, further deepening the Nigerian capital market.”
Recall that in 2021, DMO listed the N162.6b seven-year Sukuk with a rental rate of 11.20% on the Exchange to finance the rehabilitation and construction of key road projects across the 36 states and the FCT.
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 statement added.
While welcoming the listing on the bourse, the NGX said it 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 N2tr in 2021. The Exchange continues to deliver on its commitment to provide a platform for issuers and investors to meet their investment objectives,” he stressed.