Monday, September 18, 2017/10:41AM/ FSDH Research
The Debt Management Office (DMO) on behalf of Federal Government is issuing a 7–year FGN Sovereign Ijarah Sukuk Due 2024 at a return of 16.47%. Sukuk is an investment certificate that represents ownership interest of the holder in an asset or pool of assets.
The Offer for Subscription opened on Thursday, September 14, 2017 and will close on Wednesday September 20, 2017. We highlight below the details of the FGN Sovereign Ijarah Sukuk that the DMO released to the public:
To fund the construction/rehabilitation of key economic infrastructure projects
To diversify the sources of government funding
To offer ethical investors an opportunity to invest in government issued securities
To achieve a higher level of financial inclusion
Regular cash flow, as rental income will be paid half yearly to Sukuk holders
Rental Income is tax free
Classified as liquid asset by the Central Bank of Nigeria (CBN)
Good security for diversification of asset portfolio
Good investment opportunity for ethical investors
Acceptable as collateral for loans by banks and other financial institution
Safety: backed by the full faith and credit of the FGN.
The minimum subscription amount of N10,000 (i.e. 10 units@N1,000/unit) and in multiples of N1,000 (1unit) thereafter
Tenor – Seven years.
How to Invest in the FGN Sovereign Ijarah Sukuk
1. Please print and carefully complete the application form.
2. Issue a cheque/draft or transfer the amount you intend to invest into your broker’s bank account
3. Send evidence of payment to your broker
4. Submit the completed form before the close of business on Tuesday September 19, 2017
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