According to the Debt Management Office (DMO), N652.827 billion was subscribed for its N150 billion Sovereign Sukuk. This was announced in Marrakech by Patience Oniha, the DMO’s director-general.
Oniha claims that the subscription level, which represents 435 percent of the N150 billion initial investment, indicates a rise in product awareness. Additionally, she argued, it showed that investors were prepared to back the financing of infrastructure.
“In response to this strong demand for the Sukuk, the DMO has allocated N350 billion to the diverse investors who subscribed to the Sovereign
“The N350 billion will be used to finance the construction and rehabilitation of roads and bridges across the six geopolitical zones and the Federal Capital Territory. The DMO remains committed to meeting the needs of investors while also supporting the development of the domestic capital market,” she said.
Remember that the DMO stated on October 3 that subscriptions for its sixth 10-year tenor Sovereign Sukuk could be purchased for N150 billion, with a 15.75 percent rental rate. In order to facilitate the building and repair of vital national infrastructure, Sovereign Sukuk was introduced in 2017.
She stated that since 2017, the Federal Government has raised and used N752.56 billion through the Sukuk to fund the construction of vital infrastructure. According to her, Sukuk has linked multiple effects in addition to aiding in the development of infrastructure.
“The DMO, through the issuance of Sukuk, has raised and deployed N752.557 billion to the rehabilitation and construction of N4,000 kilometres of roads and bridges across the six geopolitical zones and the Federal Capital Territory (FCT).
“Apart from infrastructure development, Sukuk encourages financial inclusion by offering ethical investors an opportunity to invest in government securities.
“It deepens the domestic financial market and also sets a benchmark for corporates and subnationals,” she said. She assured that the Sukuk was backed by the full faith and credit of the Federal Government.