The Nigerian government, through the Debt Management Office, has commenced the third tranche sale of US$390mn seven-year Islamic Sukuk bond offer, an Islamic financial bond.

It will close on 2 June 2020.

Offered in a unit sales of US$2.61 per unit subject to a minimum of US$26.14 and in multiple of US$2.61 thereafter, the seven-year Sukuk with a rental rate of 11.2 per cent per annum has a half yearly payment and full payment on the day of maturity.

Proceeds will be used solely for the construction and rehabilitation of major roads across the six geopolitical zones of the country.

In 2017, the Nigerian government raised a US$260mn seven-year Sukuk bond for the financing of 25 road projects across the six geopolitical zones of the country and another US$260mn in 2018 for same seven-year period for the same purpose.

Source African Review