Debt Management Office (DMO) has announced that the federal government recorded a total of N2.2 trillion subscription from the N300 billion series VII sovereign Sukuk, marking a significant oversubscription rate of 735%.
Gatekeepers News reports that in a statement released on Wednesday, the DMO said the milestone reflects strong investor confidence and a growing appetite for financial instruments.
The statement reads, “The Series VII Sovereign Sukuk through which the Debt Management Office (DMO) offered N300 billion, on behalf of the Federal Government of Nigeria (FGN), recorded an unprecedented subscription level of over N2.205 trillion. This represents an excess of 735% subscription.”
“This is clear evidence of the huge investor-appetite for the ethical instrument introduced by the DMO in 2017 as an innovative strategy to expand the nation’s investor-base and provide opportunities for all Nigerians to participate in the activities of the capital market.”
The DMO said an analysis of the subscriptions showed that the subscribers span diverse segments of the public.
The agency added that the subscribers include retail, non-interest banks and financial institutions, banks, pension fund administrators, asset/fund managers, among others.
It said, “Like the previous series, funds realized from the Issuance will be used by the FGN to construct new roads and rehabilitate existing ones, as well as build bridges in the six (6) geopolitical zones of the country and the Federal Capital Territory.”
“The raising of funds through Sukuk to finance infrastructure projects aligns with the president’s renewed hope agenda of which infrastructure development is a key pillar.”
The DMO reaffirmed its commitment to providing safe and liquid investment opportunities while supporting federal government’s national development initiatives.
