DMO lists N162.56bn, seven-year Sukuk on NGX

The Debt Management Office has listed the N162.56bn, seven-year, FGN Ijarah Sukuk with a rental rate of 11.20 percent on the floor of the Nigerian Exchange Limited on Thursday.

The third sovereign Sukuk was issued on June 16, 2020, and would finance the rehabilitation and construction of key economic road projects across the six geopolitical zones in the country, the NGX said in a statement

It said in a statement that with the listing, members of the general public who invested in the 2020 Sukuk bonds could now sell their investments and those wishing to invest in Sukuk could now do so.

Speaking about the listing of the Sukuk, the Director-General, DMO, Ms Patience Oniha, said, “We are excited that the trading of this Sukuk is now permissible having fulfilled the condition for listing stipulated by the Financial Regulatory Advisory Council of Experts of the Central Bank of Nigeria.

“The FGN Sukuk may only be listed for trading on relevant exchanges after the commencement of works on the Road project for the construction of the Sukuk assets. This is in order to create a pool of assets consisting of non-financial and financial assets that could be freely traded while avoiding the prohibition of dealing in interest-based transactions arising out of sale of debt and exchange of currency not at par.”

NGX Limited said it welcomed the listing of the Sukuk on the bourse which would provide exit opportunity for existing investors and further deepen the Nigerian capital market, particularly, the relatively nascent Sukuk market.

The statement said the issuance and subsequent listing of the Sukuk on the NGX underscored the Federal Government’s drive for the development of critical infrastructure needed to unlock economic growth, by leveraging innovative and cost-effective financing structures.

The Exchange said it continued to deliver on its commitment to provide a platform for issuers and investors to meet their investment objectives.

It said by enhancing access to the Federal Government and the private sector, the NGX had promoted and supported the growth of the debt market in Nigeria with listings worth over N2.6trn in 2020.

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