The N300 billion Series VII Sovereign Sukuk recently offered by the Debt Management Office (DMO) on behalf of the Federal Government of Nigeria (FGN) posted an unprecedented subscription level of over N2.205 trillion, according to official information.
This represents a subscription over 735 per cent, a clear demonstration of the huge investor-appetite for the ethical instrument introduced by the DMO in 2017.
According to information made available by the debt management agency yesterday, subscribers for the N300 billion Sukuk with a seven-year tenor and rental rate of 19.75 per cent cut across various segments of the public.
The subscribers were drawn from retail, non-interest banks and financial institutions, deposit money banks, pension fund administrators, and asset/fund managers, among others.
Like the previous series, funds realised from the Issuance would be used by the FGN to construct new roads and rehabilitate existing ones, as well as build bridges in the six geo-political zones of the country and the Federal Capital Territory.
The raising of funds through Sukuk to finance infrastructure projects aligns with Mr. President’s Renewed Hope Agenda of which infrastructure development is a key pillar.
