Investment Opportunity in FGN Sovereign Ijarah Sukuk

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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:

Purpose

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

Benefits

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.

Features

The minimum subscription amount of N10,000 (i.e. 10 units@N1,000/unit) and in multiples of N1,000 (1 unit) 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

Click here to download the FAQ.

Click here to download current Sovereign Sukuk Offer Circular.

Click here to download FGN Sukuk Subscription Form.

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