The Federal Government is looking to borrow N250 billion from Nigerians for development of road infrastructure across the country.
The money invested by Nigerians are backed by the full faith and credit of the Federal Government of Nigeria The principal amount borrowed to the government will be repaid in full in 10years at a rental income of 12.80 percent per annum.
The Debt Management Office (DMO) has opened the offer for a new N250 billion Sovereign Sukuk bond being raised by the Federal Government for development of road infrastructure across the country. This bond, a fourth to be issued by the DMO and it is for a tenure of ten (10) years at a rental income of 12.80 percent per annum, to be paid half-yearly.
Bonds are simply a term for loans that you give to the Federal Government, State Government, Companies.
Government is looking at raising N250bn this December from Nigerians Credit: beingbonny Source: Getty Images The government is offering its bond at N1,000 per unit subject to a minimum subscription of N10,000 and in multiples of N1,000 thereafter.
The offer opens on Thursday, 16 December and will end on December 24, the settlement date being December 24, the Cable reports. What DMO is saying DMO hopes that institutions, people, associations, and cooperative societies would take advantage of the offer. The revenues from the offer, according to DMO, will be utilized entirely for the development and rehabilitation of critical road projects across the country’s six geopolitical zones.
A statement on its website reads: “The impact of the Sovereign Sukuk on road infrastructure in terms of job creation, travel time, safety and movement of goods have made the Sukuk a beneficial financial instrument for financing economic growth and development.
What is Sukuk bond
The DMO began issuing Sukuk in September 2017 as part of a strategic commitment to support infrastructural development, financial inclusion, and the development of the domestic securities market.
Following the N100 billion Sovereign Sukuk issued in 2017 to fund the rehabilitation and building of twenty-five (25) road projects across the six (6) geopolitical zones, the DMO issued another Sukuk for N100 billion in 2018 and another for N162.557 billion in 2020.
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