The Debt Management Office (DMO) of Nigeria on Tuesday listed
the second ₦100 billion Sukuk of the Nigerian government on the
Stock Exchange.
The seven-year Sukuk was raised at a rental rate of 15.7 per
cent, a 73-basis point discount from the 16.47 per cent rental rate
of the maiden issuance listed in April 2018.
Sukuk bonds are structured to generate returns to ethical
investors without infringing on the Islamic principles which forbid
interest payments. It represents an ownership interest in the asset
to be financed rather than in a debt obligation.
According to the DMO, the aim of the FGN Sukuk is to promote
financial inclusion and deepen the investor base of FGN
securities.
It will be deployed to financing infrastructure, in keeping with
the Nigerian government’s commitment to bridging the
infrastructural gap across the country, a statement by the NSE said
Tuesday evening.
Commenting on the Listing, Head, Trading Business Division, NSE,
Jude Chiemeka, said the NSE is poised to expand its multi-asset
hub.
“At the Exchange, we believe enhancing access to capital for the
Federal Government and the private sector is key to national
economic growth,” he said.
“This is the motivation behind our commitment to promote and
support the growth of the debt market in Nigeria. Our efforts are
geared towards expanding the NSE’s position as the multi-asset hub,
creating ample possibilities for our key stakeholders, while
delivering a transparent and liquid market to investors.”
He added that the emerging and frontier markets can expect
greater traction in their quest to continually unlock dormant pools
of capital.
“This listing is particularly important in scaling development
for these economies characterized by daunting growth in
infrastructure and also has a strong bias for Islamic Finance,” he
added.
Our correspondent gathered that the Sukuk is due to mature in
2025.
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