Thursday, September 22Inside Business Africa

DMO lists N162.6b third Sukuk on NGX platform

The Debt Management Office (DMO), yesterday, listed the N162.557 billion seven-year Ijarah Sukuk with a rental rate of 11.20 per cent on the floor of the Nigerian Exchange (NGX) Limited.

The third sovereign Sukuk was issued last June to be used for financing the rehabilitation and construction of key road projects across the six geopolitical zones.

With this listing, members of the public who invested in the 2020 Sukuk bonds can sell to investors who wish to buy into the asset.

Speaking on the listing, the Director-General of DMO, Ms. Patience Oniha, expressed satisfaction that the bond has fulfilled the condition of listing as stipulated by the Financial Regulatory Advisory Council of Experts (FRACE) of the Central Bank of Nigeria (CBN).

She said the Sukuk could only be listed for trading on relevant exchanges after the commencement of works on the underlying projects.

According to her, the bond is 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.

She said: “NGX Limited welcomes the listing of the third Sovereign Sukuk on the bourse which will provide exit opportunity for existing investors and further deepen the Nigerian capital market, particularly, the relatively nascent Sukuk market.

“The issuance and subsequent listing of the Sovereign Sukuk on the NGX underscore 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 continues to deliver on its commitment to provide a platform for issuers and investors to meet their investment objectives. By enhancing access to the Federal Government and the private sector, NGX has promoted and supported the growth of the debt market in Nigeria with listings worth over N2.6 trillion in 2020.”

Source: Guardian

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