NGX Lists FG N130bn Sukuk Bond

FG To Issue Green Bond To Fund 2023 Budget

On Thursday, the Nigerian Exchange Limited announced the listing of the Federal Government’s N130 billion sovereign Sukuk via the Debt Management Office on its platform. According to the NGX, the offering was a 10-year 15.64 percent Ijara Sukuk due in 2032.

According to DMO, the sovereign Sukuk went on sale in November 2022 with a first offer of N100 billion and drew investor interest with a subscription level of N165.25 billion.

This constituted more than 165 percent of the total amount given, and N130 billion was set aside to accommodate more investors.The DMO also stated that the entire amount of sovereign Sukuk issued from 2017 to date was N742.56 billion, with the profits assisting in the building and renovation of over 75 roads and bridges around the nation.

“The listing of the N130bn sovereign Sukuk on the NGX will expand the range of financial offerings available to investors in the capital market. The opportunity to buy and sell the sovereign Sukuk will provide liquidity to investors and promote price discovery,” the DMO said.

Reacting to the development, the Divisional Head of Capital Markets at NGX, Jude Chiemeka, commended the DMO for their effective implementation and commitment to following due process in infrastructural financing.

He emphasised the significance of the sovereign Sukuk issuance and subsequent listing on NGX saying, “This listing demonstrates the Federal Government’s dedication to developing critical infrastructure through innovative and cost-effective financing structures.

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