The Federal Government’s third Sovereign Sukuk bond of N150 billion was oversubscribed by N519.12 billion, the Debt Management Office (DMO) has said.
The debt office disclosed in a press release on Friday that the bond offer attracted huge subscriptions from investors who staked a total of N669.124 billion, translating to a subscription level of 446%.
It said it allotted N162.557 billion to investors in the third Sovereign Sukuk. The proceeds of the public debt offering is to be used to finance 44 critical road projects across the 6 geopolitical zones of Nigeria.
The large demand for the bond came from a wide range of investors, comprising insurance companies, ethical funds, fund managers as well as retail investors, the DMO said.
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According to it, the participation by a diverse range of investors conformed to the DMO’s objectives of broadening the investor base for government securities and promoting financial inclusion.
“The issuance of the third Sovereign Sukuk, which followed the debut issuance of N100bn in September 2017 and a second issuance of another N100bn in December 2018, is based on the DMO’s commitment to using borrowed funds to finance infrastructure.
“The Sukuk issuances are project-tied and are used to finance specific projects, which are disclosed to investors,” the DMO said.
The issuance of the third Sovereign Sukuk came after the debut issuance of N100 billion in September 2017 and the second issuance of another N100 billion in December 2018.
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