Commercial banks and fund managers in the nation’s capital market were responsible for the oversubscription of the N250 Billion Sovereign Sukuk Bond of the Federal Government by 346%.
The N250 billion Sovereign Sukuk whose offer opened on December 16, 2021 and closed on Thursday last week, recorded an unprecedented subscription level of over N865 billion. This outcome represents a subscription level of 346%.
An analysis of the subscription data by the Debt Management Office revealed high levels of subscription from banks and fund managers (including pension funds), as well as non-interest financial institutions, ethical funds, cooperative societies and retail investors.
“The increasing level of participation by a more diverse and larger number of investors is a confirmation that the DMO’s objectives of issuing Sovereign Sukuk to grow the domestic investor base and promote financial inclusion are being achieved. In addition, the high subscription level is proof of investors’ acknowledgement of the impact the N362.57 Billion Sovereign Sukuk issued between 2017 and 2020 has had on the development of road infrastructure in Nigeria,” a statement from the DMO revealed.
The DMO has reaffirmed that the proceeds of the N250 Billion Sovereign Sukuk will be used to finance the rehabilitation and reconstruction of road projects across the six geopolitical zones and the Federal Capital Territory.
