DMO lists N250bn Sovereign Sukuk on NSE, FMDQ

Nigeria did not fail World Bank Disclosure Rule – DMO
Written by Maritime First

…Lists 2 FGN savings bonds for subscription at N1,000 per unit***

The Debt Management Office (DMO) has listed N250 billion Sovereign Sukuk on the Nigerian Exchange (NSE) Limited and the FMDQ Securities Exchange.

The newsmen report that the N250 billion Sovereign Sukuk was issued in December 2021.

Also read: DMO records 1,322 successful subscriptions, N1.7bn allotment in June FGN bond offers

Proceeds from the Sovereign Sukuk, which was heavily oversubscribed, were meant for the execution of infrastructural projects across the country.

According to the DMO, the listing is done to maximize market liquidity for investors in the Sovereign Sukuk

“To maximize market liquidity for investors in the Sovereign Sukuk, the DMO is listing the N250 Billion Sovereign Sukuk, which was issued in December 2021, on the NSE and the FMDQ Securities Exchange.

“The N250 Billion Sovereign Sukuk is the fourth one issued by the DMO and had a massive oversubscription of N865 Billion at the time of issuance.

“This made it the highest subscription level recorded since the first Sukuk issuance in September 2017.

“It is also a representation of investors’ growing confidence in the benefits of Sukuk to the development of the Nigerian economy,” the DMO said.

It said that the proceeds of the Sovereign Sukuk since its inception have been deployed towards the construction and rehabilitation of road networks across the six geopolitical zones.

It added that the impact of such projects has been evident.

“Currently, proceeds from the N250 Billion Sovereign Sukuk are being utilized across 77 key economic road projects in the country

“The projects include the completion of roads B6, B12 and Circle road, Abuja; Abuja-Lokoja road (Koton Karfe-Lokoja); and rehabilitation of Yola-Hong-Mubi road in Adamawa State.

“Others are dualisation of Kano-Katsina road; dualization of Sapele-Ewu road; rehabilitation Of Old Enugu – Onitsha road; dualization of Ibadan-Ife-Ilesah road; dualization Of Akure – Ado Ekiti road, among others,” it said.

In the same vein, the Debt Management Office (DMO) on Monday announced the listing of two FGN savings bonds for subscription for the month of July.

It stated that the first is a two-year savings bond due on June 15, 2024, at an interest rate of 8.2 per cent per annum.

The second is a three-year savings bond due on June 15, 2025, at the n interest rate of 9.2 per cent per annum.

The bonds were offered at N1,000 per unit.

They are subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

“Opening date for both offers is June 6, while the closing date is June 10.

“Settlement date is June 15, and coupon payment dates are Sept. 15, Dec. 25, March 15 and June 15.

“Interest is payable quarterly and bullet repayment is on the maturity date,’’ the DMO stated.

It added that the bonds were backed by the full faith and credit of the Federal Government and charged upon the general assets of Nigeria.

They also qualify as liquid assets for liquidity ratio calculation in banks.

“They qualify as securities in which trustees can invest under the Trustee Investment Act.

“They also qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption and pension fund amongst other investors.

“They are listed on the Nigerian Stock Exchange Ltd.,’’ the DMO added.



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Maritime First