DMO offers N150bn Sukuk Bond for subscription at N1,000 per unit

The Debt Management Office (DMO) offered for subscription Ijarah Sukuk valued at N150 billion.

DMO disclosed this in a statement on Tuesday.

Accordingly, the bond is issued by the Federal Government of Nigeria (FGN) Roads Sukuk Company PLC on behalf of the Government.

It said that the Sukuk were offered at N1,000 per unit, subject to a minimum subscription of N10,000 and in multiples of N1,000 after that.

DMO added that the full faith and credit of the Federal Government backed the Ijarah Sukuk.

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Also, Sukuk, a Sharia-compliant instrument, was classified as a liquid asset by the Central Bank of Nigeria (CBN) and certified by the Financial Regulation Advisory Council of Experts of the CBN.

“Rental payment is made half-yearly, and bullet repayment is made on the maturity date.

“Proceeds will be used solely for the construction and rehabilitation of key road projects and bridges across the country’s six geopolitical zones.

“It qualifies as securities in which trustees can invest under the Trustee Investment Act.

“Qualifies as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds, among other investors.

“To be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited,” it said.