The Federal Government has begun the sale of its second tranche 7-year 100 billion-naira Sovereign Sukuk, the Debt Management Office, DMO said on Thursday.

The offer circular, which was obtained from its website, said the seven-year Islamic Sukuk, referred to as Ijarah is at a rental rate of 15.74% and would be due in 2025.

The bond, which is aimed at funding road infrastructure across the six geo-political zones, is payable twice a year.

Subscription for the bond, which is guaranteed by the government, will close on December 17.

sovereign sukuk offer

The circular said subscribers could purchase 1,000 naira per unit subject to a minimum subscription of 10,000 naira and in multiples of 1,000 naira thereafter with First Bank and Islamic wealth manager, Lotus Capital managing the sale.

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The DMO said it qualified as securities in which trustees could invest under the Trustee Investment Act and as government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for Tax Exemption for Pension Funds.

It will also be listed on the Nigerian Stock Exchange (NSE) and on FMDQ Over-The-Counter (OTC) platform and be classified as liquid asset by the Central Bank of Nigeria (CBN).

Recall that the Federal Government had for the first time in 2017, raised a 100 billion-naira 7-year Sukuk bond for the financing of 25 road projects across the six geopolitical zones of the country.

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