The Presidency’s Debt Management Office announced the listing of N130 billion in sovereign sukuk on the Nigerian Exchange and FMDQ on August 8, 2023.
This information was provided in a statement from the debt management office.
The successful oversubscription of the N100 billion launched in November 2022 led to the listing of this security. This listing is intended to meet the demands of investors who are interested in the facility.
“The sovereign sukuk was opened for subscription in November 2022, with an initial offering of N100 billion, but it attracted immense interest from investors with a remarkable subscription level of N165.25 billion, which represents over 165% of the amount offered,” says the announcement.
N130 billion was allotted to meet the demands of the many investors that subscribed to the Sukuk.
Sukuk bonds are investment certificates that show the holder’s ownership in a certain asset. The DMO has raised around N742.55 billion since 2017, when the Federal government started issuing sovereign sukuk, with the funds going towards road building and other infrastructure projects across the nation.
The most recent DMO sukuk, which was issued in 2017, has a tenor of 7 years and an interest return of 16.47%. All six of Nigeria’s geopolitical zones had highways built with its help.
“The N130 billion sovereign sukuk’s listing on the NGX and FMDQ securities exchange will increase the variety of financial products available to investors in the capital markets,” according to a DMO press statement.
Investors will have access to liquidity through the ability to purchase and sell sovereign sukuk, which will also encourage price discovery.
Over 75 roads in various parts of the country have been built since the FGN Sukuk project began, including the Ibadan-Ilorin Road, the Kaduna Eastern Bypass, and the Loko Oweto Bridge over the River Benue, among others.
