The Debt Management Office (DMO) has disclosed that it will list N130 billion sovereign Sukuk on the Nigerian Exchange Limited (NGX) and FMDQ Securities as from next Tuesday.
The federal debt management agency stated that the listing of debt instrument was sequel to the successful over-subscription of the N100 billion Sukuk opened in November 2022 and intended to accommodate the needs of diverse investors.
The DMO clarified: “The sovereign Sukuk was opened for subscription in November 2022, with an initial of N100 billion however, it garnered immense interest from investors with a remarkable subscription level of N165.25 billion which represents over 165% of the amount offered.
“The listing of the N130 billion sovereign sukuk on the NGX and FMDQ securities exchange will expand the range of financial offerings available to investors in the capital markets.”
“The opportunity to buy and sell the sovereign sukuk will provide liquidity to investors and promote price discovery”, it added.
Sukuk bonds are investment certificates representing ownership of the holder in an asset.
Since 2017 when the Federal Government commenced the issuance of sovereign Sukuk, the DMO has raised about N742.55 billion substantial part of which had been spent on road construction and other infrastructure projects nationwide.
Since the introduction of the FGN Sukuk, over 75 road contracts, including Ibadan-Ilorin Road, Kaduna Eastern bypass, and Loko Oweto bridge, had been awarded to improve the national highways.
