Abuja, Aug. 3, 2023 – The Debt Management Office (DMO) on Thursday announced the listing of N130 billion sovereign sukuk bond on the Nigerian Exchange and FMDQ.
The listing of this security follows the successful oversubscription of the N100 billion sukuk bond opened in November 2022.
According to DMO, the Sovereign Sukuk opened for subscription in November 2022 with an initial offer of N100 billion and garnered immense interest from investors with a remarkable subscription level of N165.25 billion.
This represented over 165% of the amount offered. In a bid to accommodate the needs of diverse investors who subscribed to the Sukuk, N130 billion was allocated.
“The total Sovereign Sukuk issued from 2017 till date currently stands at N742.557 billion and the proceeds have facilitated the construction and rehabilitation of over 75 roads and bridges across the country.
“The listing of the N130 billion Sovereign Sukuk on the NGX will expand the range of financial offerings available to investors in the capital market.
“The opportunity to buy and sell the Sovereign Sukuk will provide liquidity to investors and promote price discovery,” DMO said.
The Nigerian Exchange Limited (NGX) has also announced the listing of the N130 billion Sovereign Sukuk on its platform.
Jude Chiemeka, the Divisional Head of Capital Markets at NGX, commended the DMO under the leadership of Director-General Patience Oniha for their effective implementation and commitment to following due process in infrastructural financing.
He emphasized the significance of the Sovereign Sukuk issuance and subsequent listing on NGX.
“This listing demonstrates the federal government’s dedication to developing critical infrastructure through innovative and cost-effective financing structures.
“NGX is fully committed to providing a robust exchange infrastructure that facilitates efficient capital accessibility for the government to raise essential funds, addressing the infrastructural gap and boosting economic growth.
“The listing of the Sovereign Sukuk on the Exchange is seen as a positive move, offering an exit opportunity for existing investors and further strengthening the Nigerian capital market.” (GBN)
