The Nigerian government on Thursday announced the commencement of the sale of a N100 billion ($326 million) debut sovereign Sukuk on the local market.
A notice on the website of the Debt Management Office, DMO, said the Sukuk is meant to fund road infrastructure across the geopolitical zones in the country.
The seven-year Islamic bond will yield a 16.47 percent rental rate, and is payable semi-annually, the DMO explained.
The notice said that subscription for the bond, which begins Thursday, September 14, will close on September 20.
Nigeria has a series of debt issues lined up in 2017, including a N20 billion in “green bond”, having raised $1.5 billion Eurobond in the first quarter and sold another $300 million.
The government plans to borrow to help fund a budget deficit affected by low oil prices which have slashed government revenues and weakened its naira currency.
The National Bureau of Statistics, NBS, in September announced that Africa’s largest economy had grown out of recession, although with a slow pace of growth.
According to the DMO’s notice seen by PREMIUM TIMES Thursday, the bond will be tradable on the Nigerian Stock Exchange, NSE.
The debt office added that it may, however, re-open the offer in case of under-subscription.
Support PREMIUM TIMES' journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
TEXT AD: To advertise here . Call Willie +2347088095401...