The Debt Management Office (DMO) on Tuesday listed the Federal Government of Nigeria’s second N100bn seven-year Sukuk on the Nigerian Stock Exchange.
The Sukuk, which is due to mature in 2025, was raised at a rental rate of 15.743 per cent, a 73 basis point discount from the 16.47 per cent rental rate of the maiden issuance listed in April 2018, the NSE said in a statement on Tuesday.
Sukuk bonds are structured to generate returns to ethical investors without infringing on the Islamic principles, which forbid interest payments.
According to the DMO, the aim of the FGN Sukuk is to promote financial inclusion and deepen the investor base for FGN securities.
The statement explained that, “It will be deployed to finance infrastructure, in keeping with the government’s commitment to bridging the infrastructural gap across the country.”
The Head, Trading Business Division, NSE, Mr Jude Chiemeka, while commenting on the listing, said, “Our efforts are geared towards expanding the NSE’s position as the multi-asset hub, creating ample possibilities for our key stakeholders, while delivering a transparent and liquid market to investors.
“The emerging and frontier markets can expect greater traction in their quest to continually unlock dormant pools of capital.”
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