The Debt Management Office (DMO) on Monday reported that the 2022 N100 billion Nigerian Sovereign Sukuk subscription offer issued last month recorded 165 percent oversubscription, thereby raising the amount raked to N130 billion.
The debt management agency had on November 21, 2022 issued the N100 billion Ijarah Sukuk bond for subscription by the investing public to finance 71 roads and six bridges, measuring 1,881 kilometres across the country.
The DMO in a statement indicated that since its introduction in 2017, Sukuk bonds had generated N612.56 billion for the Federal Government, adding that e current amount raised through the November off pushed the total amount raised so far to N742.56 billion.
It stated: “The Debt Management Office is pleased to inform the public of the successful conclusion of the Issuance of N100bn Sovereign Al ’Ijarah Sukuk. The Offer for N100bn 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 N100bn was upsized to N130bn due to the over 165 per cent subscription level. The Sukuk was issued at a Rental Rate of 15.64 per cent per annum. This brings the total Sovereign Sukuk Issuance to N742.56bn as at date”, it added.
The DMO stated that the proceeds of the 2022 Sovereign Sukuk, like the previous Sukuk Issue proceeds, would be used for the construction and rehabilitation of key road projects through the Federal Ministry of Works and Housing and the Federal Capital Territory Administration.
