DMO Takes N250bn Sukuk To Stock Exchange

The N250 billion 10-year 13 per cent Ijarah Sovereign Sukuk issued to investors last year has been listed on the Nigerian Exchange (NGX) Limited.

The paper, which will mature in 2031, was taken to the exchange by the Debt Management Office (DMO) and was listed on Tuesday, July 5, 2022.

Recall that in 2021, the DMO also listed the N162.6 billion seven-year Sukuk with a rental rate of 11.20 per cent on the exchange to be used for financing the rehabilitation and construction of key road projects across the 36 states and the FCT.

On December 29, 2021, the central government sold the newly-listed Ijarah Sovereign Sukuk to finance the rehabilitation and construction of key economic road projects across the six geopolitical zones in the country.

The debt office said the proceeds of the Sukuk will be dedicated to road projects and will enable the government to achieve significant progress in bridging the infrastructure gap in Nigeria.

But to facilitate its trading and provide liquidity to investors, further deepening the Nigerian capital market, the agency listed the paper on the NGX platform, underscoring the federal government’s drive to develop the critical infrastructure needed to unlock economic growth, by leveraging innovative and cost-effective financing structures.

The Islamic bond was listed on the bourse today after it fulfilled the conditions set by the Financial Regulatory Advisory Council of Experts (FRACE) of the Central Bank of Nigeria (CBN), 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.

Reacting to the development, the exchange said the listing 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. The bourse said it will continue to deliver on its commitment to provide a platform for issuers and investors to meet their investment objectives.