December 16, (THEWILL) – The Debt Management Office (DMO), on behalf of the federal government, has announced an offer for subscription of a N250 billion road sukuk instrument for N1,000 per unit.
A statement in DMO’s website indicates that the instrument was issued by “FGN Roads Sukuk Companies 1 Plc” on behalf of the federal government.
The offer is N1,000 per unit subject to a minimum subscription of N10,000 and in multiples of N1,000 thereafter.
“It qualifies as securities in which trustees can invest under the Trustee Investment Act and 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,” DMO said, adding that 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. It is backed by the full faith and credit of the Federal Government of Nigeria,” it further stated.
The DMO explained that proceeds would be used solely for the construction and rehabilitation of key road projects across the six geopolitical zones of the country.
It announced the due date as December 2031, and rental rate of 12.80 percent per annum.
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