TheCable

The Debt Management Office (DMO) says the country’s fourth road Sukuk instrument valued at N250 billion ended with a subscription level of over N865 billion. 

This is an oversubscription of 346 percent.

The debt office said this in a statement issued over the weekend.

DMO had said that the 10-year offer, which opened on December 16, would close on Thursday.

The agency said Sukuk would prioritise road projects in the Niger Delta and federal capital territory (FCT).

“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 is being achieved,” DMO said. 

“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.

“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 (6) geopolitical zones and the federal capital territory.”

According to DMO, subscriptions were from banks and fund managers, including pension funds, as well as non-interest financial institutions, ethical funds, cooperative societies, and retail investors.