DMO

DMO Opens Two New 2021 FGN Savings Bonds For Subscription.

by with No Comment BusinessNews

The nation’s debt office, the Debt Management Office (DMO) has offered for subscription, two new Federal Government of Nigeria’s savings bonds at N1,000 per unit.

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The bond opens today 6th April 2021 and closes on 9th April 9th, 2021 and the DMO says one of the bonds is a 2-year savings bond due on April 14, 2023, at an interest rate of 5.522 per cent per annum, while the other is a 3-year FGN Savings Bond due April 14, 2024, at 6.522 per cent per annum
Each of the saving bonds is opened at N1,000 per unit, with a minimum subscription of N5,000 in multiples of N1,000 thereafter and subject to a maximum of N50 Million.
It also disclosed that the Settlement Date is fixed on April 14, 2021, and the Coupon Payment Dates are July 14, October 14, January 14, and April 14.

“The bonds qualify as securities in which trustees can invest under the Trustee Investment Act. It is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria,’’ DMO explained.

The DMO urged interested investors to contact the stock-broking firms appointed as distribution agents by the DMO.

The Debt Management Office (DMO) had also on March 18th 2021 listed its third Sovereign Sukuk “N162.557 Billion 7- year 11.20 percent Al Ijarah Sovereign Sukuk that is due 2027” on The Nigerian Stock Exchange and the FMDQ Securities Exchange.

The Sukuk which at the time of issuance was massively subscribed to the tune of N669.124 Billion or 446 percent, was issued to finance 44 economic road projects across the six (6)-geopolitical zones. With the listing, investors who are already holding the SUKUK can trade them while new investors have an opportunity to buy the SUKUK in the secondary market.

SOURCE

DG DMO

DMO lists N162.5bn 7-year Sovereign Sukuk on Nigerian Exchange Limited

by with No Comment Uncategorized

The Debt Management Office (DMO) has listed the N162.557billion, 7-year, FGN Ijarah Sukuk with a rental rate of 11.20percent on the floor of the Nigerian Exchange (NGX) Limited.

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With this listing on Thursday, 18 March 2021, members of the general public who invested in the 2020 Sukuk bonds can now sell their investments and those who wish to invest in Sukuk can now do so.

The third Sovereign Sukuk was issued on June 16, 2020, and will finance the rehabilitation and construction of key economic road projects across the six geopolitical zones in the country.

Speaking about the listing of the third Sovereign Sukuk, the Director-General, DMO, Patience Oniha stated, “We are excited that the trading of this Sukuk is now permissible having fulfilled the condition for listing stipulated by the Financial Regulatory Advisory Council of Experts (FRACE) of the Central Bank of Nigeria (CBN).

The FGN Sukuk may only be listed for trading on relevant exchanges after the commencement of works on the Road project for the construction of the Sukuk assets.

This is in order to create a pool of assets consisting of non-financial and financial assets that could be freely traded while avoiding the prohibition of dealing in interest-based transactions arising out of sale of debt and exchange of currency not at par.”

NGX Limited welcomes the listing of the third Sovereign Sukuk on the bourse which will provide exit opportunity for existing investors and further deepen the Nigerian capital market, particularly, the relatively nascent Sukuk market.

The issuance and subsequent listing of the Sovereign Sukuk on the NGX underscore the Federal Government’s drive for the development of critical infrastructure needed to unlock economic growth, by leveraging innovative and cost-effective financing structures.

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