DMO Lists Second N100bn FGN Sukuk On NGSE

Nigeria’s Debt Management Office (DMO) on Tuesday, July 23, 2019, listed the second ₦100bn, Seven-Year, FGN Sukuk due to mature in 2025 on The Nigerian Stock Exchange.
A statement by the NSE said the Sukuk was raised at a rental rate of 15.743%, representing a 73-basis point discount from the 16.47% rental rate of the maiden issuance listed in April 2018.
Sukuk bonds are structured to generate returns for ethical investors without infringing on the Islamic principles which forbid interest payments and represent an ownership interest in the asset to be financed rather than in a debt obligation.
The statement quoted the DMO as saying proceeds of the FGN Sukuk will be deployed to financing infrastructure, in keeping with the Government’s commitment to bridging the infrastructural gap across the country. It is aimed at promoting financial inclusion and deepening the investor base for FGN securities.
Commenting on the Listing, Head, Trading Business Division, NSE, Jude Chiemeka expressed the NSE’s belief in “enhancing access to capital for the Federal Government and the private sector (which) is key to national economic growth.
“This is the motivation behind our commitment to promote and support the growth of the debt market in Nigeria,” he added, stressing that ongoing efforts are geared towards expanding the bourse’s position as a multi-asset hub. This, he continued, creates ample possibilities for key stakeholders, while delivering a transparent and liquid market to investors.
This listing, he assured, “is particularly important in scaling development for these economies characterized by daunting growth in infrastructure and also have a strong bias for Islamic Finance”.