TheCable

The Debt Management Office (DMO) says the country’s Sukuk instrument valued at N150 billion ended with a subscription level of over N652 billion.

This is an oversubscription of 435 percent, the debt agency said in a statement on Friday.

Earlier this month, DMO opened an offer for a 10-year N150 billion forward ijarah (lease) sukuk instrument at a rental rate of 15.75 percent per annum, payable half-yearly.

The Sukuk is a strategic initiative that supports infrastructure development, promotes financial inclusion, and deepens the domestic securities market.

The DMO said the N150 billion offer had an overwhelming subscription.

The agency added that N350 billion from the total subscription has been allocated to investors who subscribed to the N150 billion sovereign Sukuk.

“The N150 billion sovereign Sukuk whose offer for subscription closed on October 11, 2023, was well received with a total subscription of N652.827 billion,” the statement reads.

“This subscription level, which is 435% of the amount offered (N150 billion), shows that the level of awareness of the product has increased and that investors are willing to support the financing of infrastructure.

“In response to this strong demand for the Sukuk, the DMO has allocated N350 billion to the diverse investors who subscribed to the sovereign Sukuk.”

The debt office said the N350 billion will be used to finance the construction and rehabilitation of roads and bridges across the six geopolitical zones and the federal capital territory (FCT).

The office said it remains committed to meeting the needs of investors, while also supporting the development of the domestic capital market.