The Debt Management Office (DMO) says it is offering a 10-year N250 billion road Sukuk instrument at a rental rate of 12.80 percent per annum, payable half-yearly.

Also ReadASUU Meeting Outcome

The offer at N1,000 per unit is subject to a minimum subscription of N10,000 and in multiples of N1,000 thereafter.

The DMO said this in a statement on Thursday.

Read Also
10 Good Reasons why ASUU is Embarking on strike

The Sukuk is a strategic initiative that supports the development of infrastructure, promotes financial inclusion and deepens the domestic securities market.

Since the establishment of the initiative in September 2017, Nigeria had issued three Sovereign Sukuk — 2017, 2018 and 2020.

According to the statement, the instrument was issued by FG Roads Sukuk Companies 1 Plc on behalf of the federal government.

The DMO said that the proceeds from the offer would be used solely for the construction and rehabilitation of key road projects across the six geopolitical zones of the country.

The offer opens on Thursday and closes on December 24, the settlement date being December 24.

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

“It also qualifies as Government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for Tax Exemption for Pension Funds, among other investors.”

According to DMO, the Sukuk instrument is to be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited.
“Classified as Liquid Asset by the Central Bank of Nigeria, and certified by the Financial Regulatory Advisory Council of Experts (FRACE) of the Central Bank of Nigeria,” DMO said.

“It is backed by the full faith and credit of the Federal Government of Nigeria.” DMO directed interested investors to contact the issuing houses, including Greenwich Merchant Bank Limited, Vetiva Capital Management Limited and Stanbic IBTC Capital Limited, for the offer.