The Federal Government has launched a ₦300 billion Sukuk offering to finance the development and rehabilitation of major roads and bridges across Nigeria’s six geopolitical zones.
Detailed in the 2024 Sukuk offer circular released by the Debt Management Office, the issuance opened on May 12 and will close on May 20, with settlement scheduled for May 23, 2025.The 7-year Ijarah Sukuk, maturing in May 2032, is issued through FGN Roads Sukuk Company 1 Plc and offers a 19.75% annual rental rate, paid semi-annually, with a full principal repayment at maturity.
Structured as a Forward Ijarah, the Sukuk is fully backed by the Federal Government’s credit and has been certified Shari’ah-compliant by the CBN’s Financial Regulation Advisory Council of Experts. Proceeds from the offering are designated exclusively for critical infrastructure projects. The instrument is classified as a liquid asset by the CBN and qualifies for tax exemptions under relevant income tax laws for eligible investors, including pension funds.
The Sukuk will be listed on both the Nigerian Exchange Limited and the FMDQ Securities Exchange to ensure market liquidity. Units are priced at ₦1,000 with a minimum subscription of ₦10,000, and additional investments in multiples of ₦1,000.
Issuing houses for the transaction include Greenwich Merchant Bank, Vetiva Capital, and Stanbic IBTC Capital, with technical support from CardinalStone, Lotus Financial Services, and Buraq Capital.
Participating receiving banks include Jaiz Bank, Lotus Bank, Zenith Bank, Stanbic IBTC Bank, and Greenwich Merchant Bank, while a wide network of placement agents such as Access Bank, GTBank, UBA, and Standard Chartered are supporting the distribution.
Source : https://punchng.com/
