Govt. Gets Ready To Issue 100 Billion Naira Islamic Bond
The Nigerian government is still driving efforts to find money to implement the 2017 budget deficit.
And it is indeed finding new innovative ways to accomplish its objectives.
One of such ways is through Islamic Bond, called Sukuk.
Sukuk are Sharia compliant bonds that allows Muslims to lend government money without collecting interest.
The government wants to borrow up to 100 billion naira through this means.
And it has, through the Debt Management Office, DMO started a national road show in Lagos in preparation for the issuance of the Sukuk.
Road show means that DMO will visit several parts of the country making presentations before analysts, fund managers and investors in an effort to convince them to buy.
The DMO in a statement issued on in Abuja, said the road show led by the Director-General, Patience Oniha, would also be held in Kano, Kaduna and Port Harcourt.
“Apart from serving as alternative source of funding for the government, the Sukuk will also serve to diversify the investor base for Federal Government securities, promote financial inclusion and deepen the domestic capital market.
“It is expected that the Sukuk will attract huge subscriptions from a wide range of institutional and retail investors including fund managers, associations and groups.
“The offer for subscription will open in the week after the road-show and will be advertised in major newspapers,’’ the statement said.