The Debt Management Office (DMO) has said it will list it’s 6th sovereign Sukuk of N350 billion on the Nigeria Exchange and FMDQ.
This, according to a statement by the agency, on Friday, will enable the sukuk to be traded thereby providing liquidity to investors and achieving price discovery as well as enable investors who did not previously subscribe, buy the bonds.
The DMO had offered N150 billion which was heavily oversubscribed. The N150 billion offering with a 10-year Ijarah Sukuk attracted a subscription of N652.827 billion, representing an oversubscription of N502.827 billion.
“The DMO by using the Sukuk as a vehicle for raising project-tied funds, has contributed to the construction and rehabilitation of over 4000 kilometres of roads and bridges. In addition, the Sukuk has promoted financial inclusion by attracting ethical and retail investors,” it said.
The DMO has raised N1.092 trillion through Sovereign Sukuk to enable the federal government to fund infrastructure development across the country.
The first Sukuk issued by the DMO was an N100 billion 7-year Ijarah Sukuk with a rental rate of 16.47 per cent per annum issued in September 2017. Though the offer was oversubscribed, DMO allotted N100 billion.
The second Sukuk issued was an N100 billion 7-year Ijarah Sukuk with a rental rate of 15.43 per cent per annum issued in December 2018. It was oversubscribed by N32 billion but N100 billion of the Sukuk was allotted by the DMO.
The third Sukuk issued was a N150 billion 7-year Ijarah Sukuk with a rental rate of 11.2 per cent per annum issued in June 2020. DMO allotted N162.557 billion after recording a subscription of N669.124 billion.
The fourth Sukuk issued was a N250 billion 10-year Ijarah Sukuk with a rental rate of 12.8 per cent per annum issued in December 2021. DMO recorded a subscription of N865 billion for this Sukuk, however, N250 billion was allotted.
In December 2022, DMO went to the market for the fifth N100 billion Sukuk with a 10-year Ijarah with a rental rate of 15.64 per cent per annum issued in December 2022.
