This relates to the topic of Islamic bonds (Sukuk) which I explain here:
Now, let's look at this Sukuk issued in Nigeria...
I believe this is the diagram here below:
I hope you can read it, if not the link is here:
barometerng.com/all-you-need-t…
So, what is going on here?
AND also engages the FGN to deliver a project, which is the construction of roads.
This raises a question – the lease payments can only begin once the roads are complete, but Sukuk investors
So how is this fixed?
Well, FGN enters starts to make ADVANCE lease payments, before the roads are completed. This ensures the investors get their coupons from day 1.
Hope its useful