The Federal Government’s N300 billion Series VII Sovereign Sukuk that was offered earlier this month has recorded an overwhelming subscription of N2.205 trillion, representing an excess of 735 percent, according to a statement issued by the Debt Management Office (DMO) on Wednesday.
DMO said the massive interest shown in the Sukuk issuance is clear evidence of the growing investor appetite for the non-interest, ethical investment instrument, which was first introduced in 2017.
The borrowing instrument was introduced as an innovative financing tool to broaden the nation’s investor base and encourage wider public participation in the capital market.
“This is clear evidence of the huge investor-appetite for the ethical instrument introduced by the DMO in 2017 as an innovative strategy to expand the nation’s investor-base and provide opportunities for all Nigerians to participate in the activities of the capital market,” the DMO said in a statement.
According to the debt office, an analysis of the subscriptions revealed strong interest from a broad spectrum of investors, including retail buyers, non-interest banks, conventional banks, pension fund administrators, fund and asset managers, and other financial institutions.
As with previous issuances, proceeds from the Sukuk will be deployed by the Federal Government to finance infrastructure projects across the country.
Specifically, the funds will go into the construction of new roads, rehabilitation of existing ones, and the building of bridges across all six geo-political zones and the Federal Capital Territory (FCT).
“Like the previous series, funds realised from the issuance will be used by the FGN to construct new roads and rehabilitate existing ones, as well as build bridges in the six (6) geo-political zones of the country and the Federal Capital Territory,” the debt office stated.
The DMO said the successful outing aligned with President Bola Tinubu’s Renewed Hope Agenda, under which infrastructure development is a key priority for driving economic growth and national development.
Reiterating its commitment to offering safe and liquid investment options to Nigerians, the DMO pledged continued support for the Federal Government’s development objectives through sustainable and inclusive financing mechanisms like Sukuk.
