By Emma Ujah
Investors’ interests in the Federal Government Sukuk remains strong, with the latest N100 offering records 165 percent over-subscription.
The Debt Management Office (DMO) said in statement, yesterday, that the Offer for N100billion, which opened on November 21, 2022 and was supported by wide public sensitization to encourage subscription from diverse investors, particularly the retail investors.
The initial Offer size of N100 billion was upsized to N130 billion due to the over 165% Subscription level.
The Sukuk was issued at a rental rate of 15.64% per annum. This brings the total Sovereign Sukuk Issuance to N742.557 billion as at date.
The agency said that the level of subscription was evidence of investors’ confidence in the use and impact of Sukuk in the construction and rehabilitation of road infrastructure across the country.
It added that the proceeds of the 2022 Sovereign Sukuk, like the previous Sukuk Issue Proceeds, would be used solely for the construction and rehabilitation of key road projects through the Federal Ministry of Works and Housing and the Federal Capital Territory Administration.
The DMO appreciated all the investors (Retail Investors, Banks, Pension Fund Administrators, Assets/Fund Managers, Insurances Companies, Ethical Funds, Takaful Operators/Non-Interest Banks, Stockbrokers, Government Agencies, High Networth Individuals, Trustees and Unit Trusts) who have continued to support the Federal Government’s infrastructure development efforts through Sukuk financing.
It said, “The strong participation of retail investor, ethical funds and non-interest financial institutions in this Sukuk Offering, attest to the fact that the Government’s objective of promoting financial inclusion through admitting more retail investors and ethical funds into the financial system is being achieved.
“The DMO on its part, will work to sustain the laudable achievements recorded so far in the use of Sukuk Issue Proceeds for the construction and rehabilitation of Nigerian roads, and thereby, continue to enhance ease of commuting and doing business, safety on our roads, job creation, economic growth, and prosperity of our nation.”