Federal Govt’s N100bn Sovereign SUKUK Offer Oversubscribed – DMO  

The Debt Management Office (DMO) has announced the oversubscription of its N100 billion Sovereign Al Ijarah Sukuk, a project-tied instrument that was offered by the federal government to fund national projects.

The offer for N100 billion opened on November 21, 2022 and was supported by wide public sensitization to encourage subscription from diverse investors, particularly the retail investors, the debt office said in a statement that was issued yesterday.

The initial offer size of N100 billion was upsized to N4130 billion due to the over 165 percent subscription level.

The Sukuk bond was issued at a rental rate of 15.64 percent per annum. This brings the total sovereign Sukuk issuance to N742.557 billion as at date.

DMO said the level of subscription is evidence of investors’ confidence in the use and impact of Sukuk in the construction and rehabilitation of road infrastructure across the country.

“The proceeds of the 2022 sovereign Sukuk, like the previous Sukuk issue proceeds, will be used solely for the construction and rehabilitation of key road projects through the Federal Ministry of Works and Housing and the Federal Capital Territory Administration,” DMO said.

The SUKUK offer was subscribed to by retail Investors, banks, Pension Fund Administrators, assets/fund managers, Insurances companies, ethical funds, Takaful operators/non-interest banks, stockbrokers, Government Agencies and high Networth individuals.

Others includes trustees and unit trusts) who DMO said have continued to support the federal government’s infrastructure development efforts through Sukuk financing.

“The strong participation of retail investor, ethical funds and non-interest financial institutions in this Sukuk Offering, attest to the fact that the Government’s objective of promoting financial inclusion through admitting more retail investors and ethical funds into the financial system is being achieved,” the statement said.

The DMO said on its part, it will work to sustain the laudable achievements recorded so far in the use of Sukuk Issue Proceeds for the construction and rehabilitation of Nigerian roads, and thereby, continue to enhance ease of commuting and doing business, safety on our roads, job creation, economic growth, and prosperity of our nation.