Investors To Earn 19.7% Interest As FG Issues N300bn Fresh Sukuk
The federal government is planning a N300bn forward Al Ijarah Sukuk for road projects across Nigeria.
The Debt Management Office (DMO) issues the securities on behalf of the FGN Roads Sukuk Company 1 Plc.
THE WHISTLER understands that the Sukuk will commence on May 13, 2025 with a seven-year tenor and interest rate of 19.75 per cent.
The minimum subscription is N10,000 at N1,000 per unit and in multiples of N1,000 thereafter.
According to details seen by THE WHISTLER, the interest is payable semi-annually while the bullet sum is paid at maturity.
“The capital raise will be used to finance the construction and/or rehabilitation of road projects and bridges identified by the agencies of the federal government.
“Direct, unconditional, unsubordinated unsecured obligations to the federal government of Nigeria, which ranks pari passu with outstanding present and future unsecured obligations of the federal government of Nigeria,” the document said.
The Sukuk also qualifies as government securities within the meaning of the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA).
But it was exempted for investment by Pension Funds, amongst other investors.
The security is classified as liquid assets by the Central Bank of Nigeria (CBN) and as securities in which trustees can invest under the Trustee Investment Act.
Investors To Earn 19.7% Interest As FG Issues N300bn Fresh Sukuk is first published on The Whistler Newspaper
