The Debt Management Office (DMO) has announced the success of the Federal Government of Nigeria’s (FGN) Series VII Sovereign Sukuk issuance, which was oversubscribed by 735 per cent, attracting a record total of ₦2.205tn in subscriptions against a ₦300bn offer.
The Sukuk issuance, launched as a 7-year Ijarah Sukuk bond, is designed to fund critical road and bridge infrastructure projects across the country’s six geopolitical zones and the Federal Capital Territory (FCT).
According to the DMO, this overwhelming response 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 subscription base reflected wide participation across several market segments.
“An analysis of the subscriptions showed that the subscribers cut across various segments of the public: retail, non-interest banks and financial institutions, banks, pension fund administrators, asset/fund managers, and others,” the DMO noted.
The DMO further emphasized that the funds raised would be deployed for developmental projects nationwide.
“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,” it stated.
The agency highlighted that the Sukuk initiative aligns with the Federal Government’s development agenda.
“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.”
The DMO reiterated its commitment to providing investment vehicles that are both secure and profitable for Nigerians while supporting the country’s broader economic objectives.
“The DMO remains committed to providing safe and liquid investment products to the public and supporting the FGN’s development plans,” It added.
