The Debt Administration Workplace (DMO) has introduced the issuance of a N300 billion 7-year Ijarah Sukuk bond to fund essential highway and bridge infrastructure throughout Nigeria’s six geopolitical zones.
Based on a public discover launched on the DMO’s web site on Monday, the Sukuk bond—structured as a Ahead Ijarah (Lease) Sukuk—has a rental price of 19.75% every year and is due for maturity in Could 2032.
The provide opens on Monday, Could 12, 2025, and can shut on Tuesday, Could 20, 2025, with the settlement date scheduled for Friday, Could 23, 2025.
The issuance is being carried out by FGN Roads Sukuk Firm 1 Plc on behalf of the Federal Authorities of Nigeria, and aligns with the federal government’s dedication to deploy different financing to bridge Nigeria’s infrastructure deficit.
Key Options of the Supply:
The funds raised from the Sukuk will probably be completely utilized for the development and rehabilitation of key highway tasks and bridges throughout Nigeria’s six geopolitical zones. The initiative is anticipated to speed up {economic} progress and enhance connectivity between rural and concrete facilities.
The instrument enjoys a sturdy authorized and regulatory standing:
That is the eighth Sukuk issuance by the Federal Authorities since 2017. The DMO has efficiently raised over N1 trillion from earlier Sukuk choices, which have financed the event and rehabilitation of tons of of kilometers of roads and bridges throughout the nation. The Sukuk mannequin additionally promotes moral investing and aligns with non-interest finance ideas.
By providing a rental yield that’s aggressive with market charges, the federal government hopes to draw each retail and institutional buyers, together with pension funds, insurance coverage corporations, fund managers, and faith-based buyers.
