The Debt Management Office (DMO) has listed N250 billion Sovereign Sukuk on the Nigerian Exchange (NSE) Limited and the FMDQ Securities Exchange.
The News Agency of Nigeria (NAN) reports that the N250 billion Sovereign Sukuk was issued in December 2021.
Proceeds from the Sovereign Sukuk, which was heavily oversubscribed, were meant for execution of infrastructural projects across the country.
According to the DMO, the listing is done to maximise market liquidity for investors in the Sovereign Sukuk
“To maximise market liquidity for investors in the Sovereign Sukuk, the DMO is listing the N250 Billion Sovereign Sukuk, which was issued in December 2021, on the NSE and the FMDQ Securities Exchange.
“The N250 Billion Sovereign Sukuk is the fourth one issued by the DMO and had a massive oversubscription of N865 Billion at time of issuance.
“This made it the highest subscription level recorded since the first Sukuk issuance in September 2017.
“It is also a representation of investors’ growing confidence in the benefits of Sukuk to the development of the Nigerian economy,” the DMO said.
It said that proceeds of the Sovereign Sukuk since its inception have been deployed towards the construction and rehabilitation of road networks across the six geopolitical zones.
It added that the impact of such projects have been evident.
“Currently, proceeds from the N250 Billion Sovereign Sukuk are being utilised across 77 key economic road projects in the country
“The projects include the completion of roads B6, B12 and Circle road, Abuja; Abuja-Lokoja road (Koton Karfe-Lokoja); and rehabilitation of Yola-Hong-Mubi road in Adamawa State.
“Others are dualisation of Kano-Katsina road; dualisation of Sapele-Ewu road; rehabilitation Of Old Enugu – Onitsha road; dualisation of Ibadan-Ife-Ilesah road; dualisation Of Akure – Ado Ekiti road, among others,” it said.
NAN reports that the DMO started the issuance of sovereign Sukuk in September 2017 as one of the measures towards attaining its strategic objective of bridging the infrastructure gap in Nigeria to promote job creation and economic growth.
Following the successful issuance of the N100bn debut Sukuk in 2017, the DMO issued another N100bn Sukuk in 2018.
Through the sovereign Sukuk initiative, the DMO said it had raised a total sum of N362.57bn in less than three years for the rehabilitation and construction of major economic roads across the country.
It said by issuing sovereign Sukuk, the product range available to investors in the domestic financial market had increased, while several retail investors had been attracted to the financial markets.