FGN Sukuk 2020 Offer For Subscription

 

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The Debt Management Office (DMO) on behalf of the Federal Government of Nigeria has opened the Offer for Subscription through FGN Roads Sukuk Company 1 Plc (FGN RSC1) ₦150bn 7-year IJARAH (LEASE) SUKUK due June 2027 at 11.20% p.a. The offer to subscribe for the FGN Sovereign Ijarah Sukuk Bond will close on Tuesday, June 2, 2020 and Settlement date is Tuesday, June 9, 2020.

SUMMARY OF OFFER

ISSUER Federal Government of Nigeria
THE OFFER Offer For Subscription of FGN Sovereign Ijarah (Lease) Sukuk Bond
TENOR 7 Years
INTEREST RATE   11.20%
INTEREST PAYMENT Payable Half yearly
REDEMPTION Bullet repayment at maturity date
UNIT OF SALE ₦1,000 per Unit
MINIMUM SUBSCRIPTION ₦10,000 in Multiples of ₦1,000
OPENING DATE May 21, 2020
CLOSING DATE June 2, 2020
SETTLEMENT DATE June 9, 2020
SECURITY The Bond is backed by the full faith and credit of the Federal Government of Nigeria
LISTING Nigerian Stock Exchange (NSE)
USE OF PROCEEDS Proceeds will be used solely for the construction and rehabilitation of key roads across the six geopolitical zones of the country.

Kindly note that the cut-off time for submission of forms is 12 Noon Tuesday, June 2,2020.

For subscription, please contact sales@chapelhilldenham.com or st@chapelhilldenham.com. You can also contact us on our customer care line 01-2799561-2.

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CHD Webinar: Covid-19 and Nigeria – Implications, Impact, and Opportunities

The spread of the coronavirus has had a devastating impact on the day-to-day lives of millions of people and the global economy. For oil dependent economies such as Nigeria, the impact has been more pronounced as oil prices reach new all-time lows. In response to the twin-shocks, the monetary and fiscal authorities have been active with policies – CBN stimulus measures, “adjustment” of the FX rate to N380, revision of the FGN budget, FMF stimulus package, and “disappearance” of the fuel subsidy – aimed to prevent the imminent recession.

What is the government doing to stop the spread? Are the monetary and fiscal policies deep enough? Will the FGN take IMF/World Bank funds? Will there be additional adjustment to the currency? Where do you see GDP and inflation? Has the market bottomed? What are investors buying? How should I position my portfolio?

Our Research Team – Tajudeen, Aderonke, Omotola and Lanre led the discussion.