All You Need to Know About Sovereign Sukuk


Thursday, September 14, 2017 / 9:34 AM /DMO

The Sovereign Sukuk is a non-interest bearing security. It is an obligation of the Federal Government of Nigeria (FGN). Similar to other FGN Securities, the Sovereign Sukuk is being issued by the Debt Management Office through the FGN Roads Sukuk Company 1 Plc.

Benefits of a Sovereign Sukuk

1.  Regular cash flow as Rental Income will be paid half-yearly to Sukuk Holders.

2.  Rental Income is Tax-free.

3.  Safe and risk free investment as they are a direct obligation of the FGN and backed by the full faith of the FGN.

4.  Good security for diversification of asset portfolio.

5.  Acceptable as collateral for borrowing from banks and other financial institutions.

6.  Classified as Liquid Asset by the Central Bank of Nigeria.

7.  Listed and traded on The Nigerian Stock Exchange and the Financial Market Dealers Quotation OTC Securities Exchange thereby providing opportunities for Sukuk holders to buy or sell on any business day.

8.     Good Investment opportunity for ethical investors.

Who can Invest
Pension Fund Administrators, Insurance Companies & Takaful Operators, Stockbrokers, Asset Managers, Portfolio Managers, Fund Managers, Banks and Non-interest Banks, Faith-based Institutions, Pilgrim Welfare Boards, Trustees, Corporates, Co-operative Societies, Staff Schemes, Non-Bank Financial Institutions, Trade Unions, Community Associations, Cultural Associations, Religious Institutions, Individuals, etc. 

Use of Proceeds
The Sukuk proceeds will be used exclusively to fund the construction and rehabilitation of 25 roads across 6 Geopolitical zones in the country.  

Features of the Sukuk
Tenor: 7 years

Issue Amount: N100 Billion

Profit Payment: Half-yearly

Rental Rate: To be announced by the DMO

Subscription Period: Five (5) days

Minimum Subscription: N10,000.00 with Multiples of N1,000.00 thereafter.

Security: Backed by the full faith and credit of FGN

Download Sovereign Sukuk Offer Circular Here

Download FGN Sovereign Sukuk Subscription Form Here

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