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Rental Rate of FGN Series IV Sukuk Issuance Revised To 13.00%

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December 24, 2021/Stanbic IBTC

As an update, further to market feedback and to enable more participation from investors, the Debt Management Office Nigeria has revised the rental rate for the up to NGN250 billion Federal Government of Nigeria Series IV Sovereign Sukuk issuance  to 13.00% per annum.

A summary of the indicative terms of the Issue is provided below:

Issuer:FGN Roads Sukuk Company 1 Plc
Obligor:Federal Government of Nigeria
Instrument:Sukuk Al Ijarah (Lease)
Joint Issuing House:Stanbic IBTC Capital Limited  
Financial Adviser:Buraq Capital Limited
Issue Size:Up to NGN250 billion
Tenor:10 years
Rental Rate:13.00% per annum
Repayment:Bullet sum at maturity
Use of Proceeds:The funds will be used to finance rehabilitation and construction of road projects identified by the Federal Ministry of Works and Housing, Federal Capital Territory Administration, and the Ministry of Niger Delta Affairs
Status:Direct, unconditional, unsubordinated unsecured obligations of the Federal Government of Nigeria which ranks pari passu with other outstanding present and future unsecured obligations of the Federal Government of Nigeria
Distribution:Fixed price public offering to all classes of investors
Offer Opens:Thursday, 16 December, 2021
Offer Closes:Thursday, 23 December, 2021
Minimum Subscription:Minimum of NGN10,000 (at NGN1,000/unit) and in multiples of NGN1,000 thereafter
Shari’ah Compliance Status:Shari’ah Compliant; structure and transaction documents approved by the Financial Regulatory Advisory Council of Experts (FRACE)
Listing:Nigerian Exchange Limited and FMDQ Securities Exchange Limited

Investors seeking to increase their bids are required to submit revised bids not later than Thursday, 23 December, 2021.

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