The N100 billion federal government’s Sukuk bond on offer has recorded about 165 per cent oversubscription, says the Debt Management Office.

This is contained in a statement by the DMO on Tuesday.

The DMO said the sovereign Sukuk closed on a high note with 165 per cent oversubscription, totalling N130 billion.

The Sukuk offer, which was issued at a rental rate of 15.64 per cent, brings the total Sovereign Sukuk issuance, since inception in 2017, to N752, 557 billion.

It said proceeds from the offer would be deployed solely to construct and rehabilitate certain strategic road infrastructure across the country.

“The level of subscription is evidence of investors’ confidence in the use and impact of Sukuk in the construction and rehabilitation of road infrastructure across the country,” the DMO explained. “The proceeds of the 2022 Sovereign Sukuk, like the previous Sukuk Issue Proceeds, will be used solely for the construction and rehabilitation of key road projects.”

It revealed that the proceeds would be deployed through the Federal Ministry of Works and Housing and the Federal Capital Territory Administration.

“The strong participation of retail investors, ethical funds and non-interest financial institutions in the Sukuk offering attest to the fact that the government’s objective of promoting financial inclusion is being achieved,” it stated. “The DMO, in its part, will work to sustain laudable achievements recorded so far in the use if the Sukuk issue proceeds for the construction and rehabilitation of Nigerian roads.”

It noted that this would enhance the ease of doing business safely on “our roads, job creation, economic growth and prosperity for our nation.” 

(NAN)