The Nigerian Exchange Limited (NGX) announced on Thursday the listing of the Federal Government’s N130 billion sovereign Sukuk through the Debt Management Office (DMO) on its platform.
The 10-year 15.64 percent Ijara Sukuk due in 2032 had opened for subscription in November 2022 with an initial offer of N100 billion.
The response from investors was overwhelming as subscription levels rose to N165.25 billion. This represented over 165 percent of the original amount offered, prompting the DMO to allocate N130 billion to accommodate the heightened interest from investors.
The DMO highlighted that the total sovereign Sukuk issued from 2017 till date stood at an impressive N742.56 billion. The funds raised through these Sukuk issuances have played a vital role in the construction and rehabilitation of over 75 roads and bridges across the country, significantly improving Nigeria’s infrastructure.
“The listing of the N130bn sovereign Sukuk on the NGX will expand the range of financial offerings available to investors in the capital market. The opportunity to buy and sell the sovereign Sukuk will provide liquidity to investors and promote price discovery,” the DMO said.
Commenting on the success of the listing, the Divisional Head of Capital Markets at NGX, Jude Chiemeka, praised the DMO for their effective implementation and commitment to following due process in infrastructural financing.
Explaining the importance of the sovereign Sukuk issuance and subsequent listing on NGX, he said “This listing demonstrates the Federal Government’s dedication to developing critical infrastructure through innovative and cost-effective financing structures.
