2020-12-18 | FMD

Exposure Draft Framework for the Operationalisation of Central Bank of Nigeria Non-Interest Asset Backed Securities

The Central Bank of Nigeria (CBN) has developed the CBN Non-Interest Asset-Backed Securities (CNI-ABS) to deepen financial markets, increase financial inclusion, and provide a liquidity management instrument compliant with non-interest finance principles. The CNI-ABS structure involves the conversion of CBN investments in Islamic Development Bank and International Islamic Liquidity Management Corporation sukuk, securitization of these investments, and auctioning to eligible institutions. The auction process, including timing, amounts, rates, and settlement, is outlined, with the CNI-ABS featuring as a tradable instrument with a rate and maturity determined by the underlying asset's returns.

Nigeria

Central Bank of Nigeria

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