Debt Management Office (DMO) says the federal government recorded a total of N2.2 trillion subscription from the N300 billion series VII sovereign Sukuk.
In a statement on Wednesday, DMO said the figure represents an oversubscription of 735 percent.
The office said the milestone signals investors’ appetite for the financial instrument.
“The Series VII Sovereign Sukuk through which the Debt Management Office (DMO) offered N300 billion, on behalf of the Federal Government of Nigeria (FGN), recorded an unprecedented subscription level of over N2.205 trillion. This represents an excess of 735% subscription,” the statement reads.
“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.”
According to the DMO, an analysis of the subscriptions showed that the subscribers span diverse segments of the public.
The agency said the subscribers include retail, non-interest banks and financial institutions, banks, pension fund administrators, asset/fund managers, among others.
“Like the previous series, funds realized 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 said.
“The raising of funds through Sukuk to finance infrastructure projects aligns with the president’s renewed hope agenda of which infrastructure development is a key pillar.”
The DMO emphasised its dedication to offering secure and liquid investment opportunities to the public, while supporting the federal government’s development initiatives.
On May 12, the debt office opened a seven-year N300 billion forward Ijarah (lease) Sukuk at a “rental rate” of 19.75 percent per annum
