DMO lists Sukuk bond of N162.5bn on NSE | Ripples Nigeria
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DMO lists Sukuk bond of N162.5bn on NSE

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Nigerian govt commences auction of savings bond

Nigeria’s Debt Management Office (DMO) has listed a total of N162.5 billion seven-year Ijarah Sukuk Bond Sovereign Sukuk, due to mature in 2027 on the Nigerian Stock Exchange (NSE).

With the listing, investors in the SUKUK 2020 bonds can now sell their investments and potential investors can also invest through the NSE.

In a statement released by the debt office on Thursday, the Islamic bond was raised at a rental rate of 11.200 percent and first issued on 16 June 2020 by the Federal Government.

Read also: Nigerian govt borrowed N14.5trn in 2020 —DMO

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.

More so, Interest-based bonds are banned in Muslim nations, so the listing will help investors who due to Islamic belief do not partake in other kinds of investments that attract interest.

With the listing, investors in the SUKUK 2020 bonds can now sell their investments and potential investors can also invest through the NSE.

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