DMO Lists N162.557 Billion Sukuk On Nigerian Exchange

The Debt Management Office (DMO) has listed the N162.557billion, seven-year, Federal Government Ijarah Sukuk on the Nigerian Exchange (NGX) Limited.

The Sukuk has a rental rate of 11.20 per cent, the Nigerian Stick Exchange stated in a statement on Thursday.

According to it, the third Sovereign Sukuk, which was issued on June 16, 2020, will finance the rehabilitation and construction of key economic road projects across the six geopolitical zones in the country.

With this listing, the NSE said members of the general public who invested in the 2020 Sukuk bonds can now sell their investments and those who wish to invest in Sukuk can now do so.

Speaking about the listing of the third Sovereign Sukuk, the Director-General, DMO, Ms. Patience Oniha, stated, “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 (FRACE) of the Central Bank of Nigeria (CBN).

“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.”

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

According to the Exchange, 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.

By enhancing access to the Federal Government and the private sector, NGX said it has promoted and supported the growth of the debt market in Nigeria with listings worth over N2.6 trillion in 2020.