According to the Debt Management Office, the N100 billion federal government’s Sukuk bond has received a roughly 165% oversubscription.
The DMO stated this in a statement on Tuesday.
A Sukuk is an Islamic financial certificate, similar to a bond in Western finance, that complies with Islamic religious law commonly known as Sharia.
According to the DMO, the sovereign Sukuk concluded with a 165 percent oversubscription, or N130 billion.
The Sukuk offer raises the total issuance of sovereign Sukuk since its establishment in 2017 to N752, 557 billion and was offered at a rental rate of 15.64 percent.
It stated that the offer’s earnings will only be used to build and repair specific strategic road infrastructure across the nation.
“The level of subscription is evidence of investors’ confidence in the use and impact of Sukuk in the construction and rehabilitation of road infrastructure across the country,” the DMO explained.
“The proceeds of the 2022 Sovereign Sukuk, like the previous Sukuk Issue Proceeds, will be used solely for the construction and rehabilitation of key road projects.”
It revealed that the proceeds would be deployed through the Federal Ministry of Works and Housing and the Federal Capital Territory Administration.
“The strong participation of retail investors, ethical funds, and non-interest financial institutions in the Sukuk offering attest to the fact that the government’s objective of promoting financial inclusion is being achieved,” it stated.
“The DMO, in its part, will work to sustain laudable achievements recorded so far in the use of the Sukuk issue proceeds for the construction and rehabilitation of Nigerian roads.”
It noted that this would enhance the ease of doing business safely on “our roads, job creation, economic growth and prosperity for our nation.”
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