The Debt Management Office (DMO) says its ₦150 billion Sovereign Sukuk received a subscription of N652.827 billion.
The Director-General of the DMO, Patience Oniha, made this known on Thursday in Marrakech.
According to Oniha, the subscription level, which is 435 per cent of the ₦150 billion original amount, shows that the level of awareness of the product has increased.
She said it was also an indication that investors were willing to support the financing of infrastructure.
“In response to this strong demand for the Sukuk, the DMO has allocated ₦350 billion to the diverse investors who subscribed to the Sovereign.
“The ₦350 billion will be used to finance the construction and rehabilitation of roads and bridges across the six geopolitical zones and the Federal Capital Territory.
“The DMO remains committed to meeting the needs of investors while also supporting the development of the domestic capital market,” she said.
The News Agency of Nigeria (NAN) reports that on October 3, the DMO announced an offer for subscription of its 6th, 10-year tenor Sovereign Sukuk for ₦150 billion, at a rental rate of 15.75 per cent.
Oniha said that the Sovereign Sukuk was initiated in 2017 to aid the rehabilitation and construction of critical national infrastructure.
She said that the Federal Government had raised and deployed N752.56 billion through the Sukuk, for the development of critical infrastructure since 2017.
According to her, Sukuk helps in infrastructure development and also achieves associated multiplier benefits.
“The DMO, through the issuance of Sukuk, has raised and deployed N752.557 billion to the rehabilitation and construction of N4,000 kilometres of roads and bridges across the six geopolitical zones and the Federal Capital Territory (FCT).
“Apart from infrastructure development, Sukuk encourages financial inclusion by offering ethical investors an opportunity to invest in government securities.
“It deepens the domestic financial market and also sets a benchmark for corporates and subnationals,” she said.
She assured that the Sukuk was backed by the full faith and credit of the Federal Government.
