Nigeria starts sale of N100 billion Sukuk

Central bank of Nigeria (CBN)
Central bank of Nigeria building

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.

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