BY BAMIDELE FAMOOFO
The Debt Management Office has announced the successful conclusion of the Issuance of N100 billion Sovereign Al ’Ijarah Sukuk which opened on November 21, 2022.
DMO in a report on Monday disclosed that it was able to raise N130 billion instead of the targeted N100billion. The Federal Government debt agency noted that offer enjoyed investors’ patronage due to wide public sensitization to encourage subscription from diverse investors, particularly the retail investors.
“The initial Offer size of N100 billion was upsized to N130 billion due to the over 165% Subscription level. The Sukuk was issued at a Rental Rate of 15.64% per annum. This brings the total Sovereign Sukuk Issuance to N742.557 billion as at date,” DMO disclosed.
The DMO further explained that 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.”
Director General of DMO, Ms. Patience Oniha, said: “The DMO appreciates all the investors (Retail Investors, Banks, Pension Fund Administrators, Assets/Fund Managers, Insurances Companies, Ethical Funds, Takaful Operators/Non-Interest Banks, Stockbrokers, and Government Agencies, High Net worth Individuals, Trustees and Unit Trusts) who 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 DMO on its part, 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,” she noted.
