The Federal Government of Nigeria has once again demonstrated its unrelenting commitment to the development of local infrastructure through the debt capital markets, by listing the N162.56 billion Ijarah Sukuk bond on the FMDQ Securities Exchange.
This is according to a notification by FMDQ which reads: ‘’FMDQ Exchange has successfully admitted the following Bond to its platform: The Federal Government of Nigeria Roads Sukuk Company 1 Plc N162.56 billion Ijarah Sukuk’’.
Sukuk bond are sharia-compliant, fixed-income capital markets instruments, structured in a way to generate returns in conformity with Islamic principles and laws. Some of these principles include; the prohibition of interest, scrutinizing and funding only permissible assets (halal) among others.
The proceeds from the bond will be used to fund earmarked capital projects most especially roads, across the states in the federation.
Recall that the Federal Government of Nigeria through the Debt Management Office had recently announced the listing of the aforementioned bond on the Nigerian Stock Exchange and the FMDQ Exchange, as captured by Nairametrics.
What you should know:
- The bond is the third sovereign Sukuk, sequel to the successful issuance of the N100 billion Sukuk in 2017 and another of equivalent amount in 2018.
- The recent Sukuk has a maturity period of 7 years and at the time of issuance was massively subscribed by 446%