With reports from the Debt Management Office (DMO), the N250 billion Sovereign Sukuk offer received an unprecedented N865 billion oversubscription.

Ms Patience Oniha, Director-General of the DMO, announced this in a statement on Saturday.

According to Oniha, the overwhelming response demonstrated that the goal of expanding the domestic investor base and promoting financial inclusion through Sovereign Sukuk had been met.

She stated that the 346 percent over-subscription resulted from high-level participation by banks, fund managers, and non-interest financial institutions.

“The N250 billion Sovereign Sukuk offering, which began on December 16, ended on December 23, with an unprecedented subscription level of over N865 billion.”

“An examination of the subscription data revealed that banks and fund managers (including pension funds), as well as non-interest financial institutions, ethical funds, cooperative societies, and retail investors, had high levels of subscription.”

“The growing level of participation by a more diverse and larger number of investors confirms that the DMO’s objectives of issuing Sovereign Sukuk to grow the domestic investor base and promote financial inclusion are being met,” she said.

According to Oniha, the high level of subscription was a vote of confidence in the DMO’s previous Sukuk offers.

She assured that the funds would be used to fund road rehabilitation and reconstruction projects throughout the country.

“The high subscription level demonstrates investors’ recognition of the impact the N362.57 billion Sovereign Sukuk issued between 2017 and 2020 has had on the development of Nigerian road infrastructure.”

 

“The DMO reaffirms that the proceeds of the N250 will be used to support the DMO’s operations.”

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