Nigeria has started the sale of a 100 billion naira ($326 million) debut FGN Sukuk on the local market to fund road infrastructure, the Debt Management Office said on Thursday. The seven-year Islamic bond which is structured as a lease will yield a 16.47 percent rental rate, payable semi-annually. Subscription for the bond, which is guaranteed by the government, will close on Sept 20.
What is Sukuk
“Sukuk” is an Arabic term which simply means “certificates”. The origins of Sukuk can be traced to the classical Islamic period during which papers representing financial obligations from trade and other commercial activities were issued.

In its present form, a Sukuk issue is akin to the conventional concept of securitization – a process in which ownership of an underlying asset/project or transaction is transferred to a large number of investors through certificates representing proportionate value of the relevant assets.

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), the leading international not-for-profit organization primarily responsible for development and issuance of standards for the global Islamic finance industry whose standards has been adopted by Central banks and regulatory authorities in a number of countries, either on a mandatory basis or as basis of guidelines defines Sukuk as “certificates of equal value representing common shares in ownership of tangible assets, usufruct and services or (in the ownership of) the assets of a particular project or a specific investment activity.”

The sukuk has swiftly emerged as an alternative financing mode for sovereigns and corporates alike (regardless of faith) and is now popularly termed the flagship instrument of the Non interest Finance industry.

Sukuk represent ownership shares in assets that generate profits or rentals to Sukuk holders. Hence, it is essential that Sukuk are actually represented by a specific, tangible asset throughout its entire tenure and Sukuk holders must have a proprietary interest in the assets which are being financed.

Ijarah (Lease) Sukuk
This is the most common Sukuk issuance type for project finance or acquisition of new assets. Ijarah Sukuk is a leasing structure with a right available to the lessee to purchase the asset at the end of the lease period (similar to finance lease). The rental rates of return on Ijarah Sukuk can be fixed or floating.


Read more https://barometerng.com/all-you-need-to-know-as-nigeria-starts-sale-of-100-bln-naira-sukuk/

Use the money wisely. One thing is to borrow and another is to mellow pls buhari pls and pls don't allow mellowing again we need a better future.