Debt Management Office (DMO) has offered for subscription, Ijarah Sukuk valued at N150 billion, according to a report by the News Agency of Nigeria (NAN).

The Sukuk is issued by Federal Government of Nigeria (FGN) Roads Sukuk Company PLC,  on behalf of the Federal Government.

 In a statement by the DMO, the Sukuk were offered at N1,000 per unit, subject to a minimum subscription of N10,000 and in multiples of N1,000 thereafter.

Rental payment is made half-yearly, and bullet repayment is done on the date of maturity. Proceeds are used solely for the construction and rehabilitation of key road projects and bridges across the six geopolitical zones of the country.

The DMO added that the Ijarah Sukuk was backed by the full faith and credit of the Federal Government.

 The Sukuk qualifies as securities in which trustees can invest under the Trustee Investment Act. It also qualifies as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds among other investors.

It is to be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited.

The DMO added that the Ijarah Sukuk was classified as liquid asset by the Central Bank of Nigeria (CBN) and certified by the Financial Regulation Advisory Council of Experts of the CBN.

 Sukuk is an instrument that represents the interests of the owner in an asset or pool of assets. It ensures that every financial activity is backed by real economic activity, and is usually linked to specific infrastructure projects.