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DMO lists N250bn sovereign Sukuk on NGX, FMDQ

DMO lists N250bn sovereign Sukuk on NGX, FMDQ
July 05
12:47 2022

The Debt Management Office (DMO) has listed a 250 billion, 10-year, 13% Ijarah Sovereign Sukuk due 2031 on the Nigerian Exchange Limited.

In a statement on Tuesday, DMO said it also listed the Sukuk on the FMDQ Securities Exchange Limited.

According to DMO, the proceeds of the Sukuk would be dedicated to road projects and would enable the government to achieve significant progress in bridging the infrastructure gap in Nigeria.

“The Ijarah Sovereign Sukuk was successfully listed on NGX, having fulfilled the conditions set by the Financial Regulatory Advisory Council of Experts (FRACE) of the Central Bank of Nigeria, which stipulated that trading in the instrument would only be permissible after the commencement of works on the road projects scheduled for construction through the Sukuk assets,” the statement reads.

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In 2021, the DMO also listed a N162.6 billion seven-year Sukuk with a rental rate of 11.20 percent on the exchange.

On its part, NGX said the listing would facilitate its trading and provide liquidity to investors, further deepening the Nigerian capital market.

The NGX said the issuance and subsequent listing of the Sovereign Sukuk on its platform underscore the federal government’s drive to develop the critical infrastructure needed to unlock economic growth by leveraging innovative and cost-effective financing structures.

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“NGX welcomes this listing on the bourse, which will provide an exit opportunity for existing investors and further deepen the Nigerian capital market, particularly, the relatively nascent Sukuk market. By enhancing access to the Federal Government and the private sector, NGX has promoted and supported the growth of the debt market in Nigeria with listings worth over N2 trillion in 2021,” NGX said.

“The Exchange continues to deliver on its commitment to provide a platform for issuers and investors to meet their investment objectives.”

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