In a bid to address the infrastructure challenge bedevilling the country, the Debt Management Office on Tuesday disclosed that the Federal Government would float over N100 billion third Sukuk Bond before the end of 2019.
Browsing: Sukuk bond
The Nigerian Stock Exchange on Monday said the Federal Government raised N1.16 trillion from the nation’s bourse in 2018 to finance fiscal and infrastructure deficits.
The Federal Government received over N132 billion subscriptions from 2,073 investors for its N100 billion seven-year 15.74 per cent Sukuk offer, the Debt Management Office has said.
Sukuk or Islamic Bond is a financial instrument structured to generate returns to ethical investors without infringing on the Islamic law, which forbids interest payments.
In a letter read by the Speaker, Alhaji Ahmed Marafa, on the floor of the House on Thursday, Bello noted that the bond was part of a third funding plan to rehabilitate and reactivate essential infrastructure in the state.
She said the seven-year bond at 16.47 per cent due by 2024, was packaged on behalf of the government by DMO and the Ministry of Finance.
The News Agency of Nigeria reports that the Federal Government had in October, 2017 released the proceeds of the N100 billion Sukuk bond to 25 key economic road projects across the country.
term, there would be an acceleration in the accumulation of debt and an increase in debt servicing costs. However, this would be ameliorated, by correcting the low tax to Gross Domestic Product ratio through revenue mobilisation, releasing funds to sustain investment in capital and repaying the debt