Lagos (INVESTADVOCATE)-The Debt Management Office (DMO) will on Tuesday April 10, 2018 list a N100 billion sovereign sukuk on the floors of the FMDQ OTC Securities Exchange.
The Nigerian government had opened the subscription for the N100 billion sukuk on Thursday September 14, 2017 and closed it on Wednesday September 20, 2017.
The DMO had explained that the seven-year Islamic bond will yield a 16.47 percent rental rate and payable semi-annually.
The government said proceeds from the sukuk would be used to fund their infrastructure deficit a trend fast gaining pace in Africa, with notable Sukuk issuances by South Africa, Senegal, and the Government of Cote d’Ivoire.
The sukuk is considered as a viable option as the Federal and State Governments seek alternative funding sources for infrastructure and to help fund a budget deficit affected by low oil prices which have slashed government revenues and weakened its naira currency.
This is coming on the heels of earlier announcement by the Securities and Exchange Commission SEC in June 2017 that the DMO has concluded arrangements to issue the maiden N100.0 Billion Sukuk in the Nigerian Capital Market.