The Debt Management Office (DMO) on behalf of the Federal Government has opened an offer for subscription of N150 billion Sukuk bond with rental rate of 11.20 per cent per annum, payable half-yearly with tenor of 7 years, to mature in June 2027.
A notice from the debt office over the weekend stated that the offer involves N1,000 per unit subject to a minimum subscription of N10,000 and in multiples of N1,000 thereafter.
It noted that, receiving Banks are: First Bank of Nigeria Ltd,Stanbic IBTC Bank Plc,Jaiz Bank Plc,Taj Bank Ltd, Sterling Bank Plc, Zenith Bank and Unity Bank Plc.
Placement Agents for the offer are:Access Bank Plc, Citi Bank Nigeria Ltd, Coronation Merchant Bank Ltd, Ecobank Nigeria Ltd, FBNQuest Merchant Bank Ltd, First Bank of Nigeria Ltd. First City Monument Bank Plc and FSDH Merchant Bank Ltd. Others are:Guaranty Trust Bank Plc,Stanbic IBTC Bank Plc, Standard Chartered Bank Nigeria Ltd., United Bank for Africa Plc.,Zenith Bank Plc.,and registered stockbroking firms.
Opened on May 21, 2020, the notes will be closing on June 2, 2020 with settlement date of June 9, 2020.
Sukuk is derived from the word Sakk, which can be translated to mean legal instrument, deed, and cheque. Sakk can also mean to strike a deal on a paper document.
The origin of Sukuk dates to 7th century AD, where the first Sukuk transaction took place in Damascus, Syria in the Great Mosque of Damascus (Umayyad Mosque).
Since Islam prohibits usury – collecting interest from loans – interest-based bonds are banned in Muslim nations.
Backed by the full faith and credit of the Federal Government of Nigeria, the proceeds will be used solely for the construction and rehabilitation of key roads across the six geopolitical zones of the country the DMO stated.
Sukuk indicates ownership of an asset. The assets that back Sukuk are compliant with Shariah, meaning the avoidance of Islamic prohibitions on gambling, alcohol, tobacco, narcotics, and adult entertainment products and services.
The notes pay a fixed percentage return as a profit-sharing percentage of the underlying assets’ revenues.
Regular bonds, on the other hand, pay a fixed rate of return as interest (coupon) semi-annually or annually.
“Pursuant to the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004 On the authority of the Federal Government of Nigeria FGN Roads Sukuk Company 1 Plc (FGN RSC1) Offers for Subscription through FBNQuest Merchant Bank Limited & Lotus Financial Services Limited (the “Financial Advisers”) who are authorised to receive applications for up to N150,000,000,000 7-Year Ijarah Sukuk due June 2027 Rental Rate: 11.200 per centper annum,” the notice read in part.
YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE
Buy and read digital replicas of your TRIBUNE titles by subscribing through E-VENDING
South-West Attorney Generals Meet, To Harmonise Region’s Laws
The Attorney Generals of the six South-West states held their first virtual meeting since the coronavirus pandemic and deliberated on issues pertaining to the effective administration of justice in the region. The meeting which was facilitated by the Ekiti State Attorney General and Commissioner for Justice, Olawale Fapohunda… Read full story
COVID-19: Inter-State Lockdown Breaks Down
There is a brewing anxiety over apparent breakdown of the lockdown and restriction of interstate movement of non-essential persons and goods ordered by the Federal Government to curb the spread of coronavirus. The development has reportedly resulted in the spike of virus cases in some states, particularly Lagos and Ogun… Read full story
Anxiety Over Retirement Age For National Assembly Clerk, Others
MOVE by the Clerk of the National Assembly (CNA), Mohammed Sani-Omolori and certain senior officials to extend their service beyond the statutory 35 years may have hit the rocks, Sunday Tribune can authoritatively reveal. Investigations revealed that banking on a controversial amendment, ‘Retirement age and… Read full story
COVID-19 Fears: Buhari Bars Sallah Visitors From Villa
PRESIDENT Muhammadu Buhari has said that he will be obeying the directive of the Sultan of Sokoto, Alhaji Muhammad Sa’ad Abubakar that all Muslims in the country should observe Eid-el-Fitr prayers at home. He also asked politicians, religious leaders, top government officials and children not to visit him during the… Read full story
FG Pays April Allowances To N-Power Beneficiaries
The Federal Ministry of Humanitarian Affairs, Disaster Management and Social Development on Saturday disclosed that it has concluded payment of April stipends to all the N-Power beneficiaries across the country. The Minister of Humanitarian Affairs, Disaster Management and Social Development, Sadiya Umar… Read full story
UK COVID-19 Deaths Rise To 36,675 After Another 282 Patients Die
Another 282 COVID-19 patients have died in Britain as of Friday afternoon, bringing the total coronavirus-related death toll in the country to 36,675, British Transport Secretary, Grant Shapps, said on Saturday. The figures include COVID-19 related deaths in all settings such as hospitals, care homes and the… Read full story
Develop Creative Industry For Stronger Economy, Chinese Envoy Advises FG
A Chinese envoy to Nigeria, Mr Li Xuda, told the Federal Government on Saturday to focus more on developing the creative industry to fortify Nigeria’s economy. Tribune Online reports that Xuda who is the Cultural Counsellor of the Embassy of the People’s Republic of China gave the advice at a zoom meeting… Read full story
Amaechi’s Theory Of Nigerian Politicians And Their Monkeys
AWAY from the ravages of COVID-19 and the dispiriting news of multiple infections and rising deaths, the interview granted by Nigeria’s Minister of Transportation, Rotimi Amaechi, to the Punch newspaper made an interesting reading. In the interview, Amaechi revealed a lot about himself, the nature of Nigerian politics… Read full story
Two Young Men Arrested By Amotekun For Allegedly Stealing Five Female Panties In Osun
Two men who specialised in stealing female panties for ritual purposes in Osun State were on Saturday, May 23, arrested after they were found with five female panties. The two men were arrested at the Kajola Ajaba community in the Ila Orangun area of the state by the newly-created security network in the state… Read full story
COVID-19: Saudi Arabia To Quarantine Banknotes, Coins Up To 20 Days
Saudi Arabia will quarantine banknotes and coins it receives from local and foreign sources for a period of 14 to 20 days as a precautionary measure to prevent the spread of the coronavirus, according to the Saudi Arabian Monetary Authority… Read full story