The News Agency of Nigeria (NAN) reports that the N250
billion Sovereign Sukuk was issued in December 2021.
Proceeds from the Sovereign Sukuk, which was heavily
oversubscribed, were meant for execution of infrastructural projects across the
country.
According to the DMO, the listing is done to maximise market
liquidity for investors in the Sovereign Sukuk.
“To maximise market liquidity for investors in the Sovereign
Sukuk, the DMO is listing the N250 Billion Sovereign Sukuk, which was issued in
December 2021, on the NSE and the FMDQ Securities Exchange.
“The N250 Billion Sovereign Sukuk is the fourth one issued
by the DMO and had a massive oversubscription of N865 Billion at time of
issuance.
“This made it the highest subscription level recorded since
the first Sukuk issuance in September 2017.
“It is also a representation of investors’ growing
confidence in the benefits of Sukuk to the development of the Nigerian
economy,” the DMO said.
It said that proceeds of the Sovereign Sukuk since its
inception have been deployed towards the construction and rehabilitation of
road networks across the six geopolitical zones.
It added that the impact of such projects have been evident.
“Currently, proceeds from the N250 Billion Sovereign Sukuk
are being utilised across 77 key economic road projects in the country
“The projects include the completion of roads B6, B12 and
Circle road, Abuja; Abuja-Lokoja road (Koton Karfe-Lokoja); and rehabilitation
of Yola-Hong-Mubi road in Adamawa State.
“Others are dualisation of Kano-Katsina road; dualisation of
Sapele-Ewu road; rehabilitation Of Old Enugu – Onitsha road; dualisation of
Ibadan-Ife-Ilesah road; dualisation Of Akure – Ado Ekiti road, among others,”
it said.
NAN reports that the DMO started the issuance of sovereign
Sukuk in September 2017 as one of the measures towards attaining its strategic
objective of bridging the infrastructure gap in Nigeria to promote job creation
and economic growth.
Following the successful issuance of the N100bn debut Sukuk
in 2017, the DMO issued another N100bn Sukuk in 2018.
Through the sovereign Sukuk initiative, the DMO said it had
raised a total sum of N362.57bn in less than three years for the rehabilitation
and construction of major economic roads across the country.
It said by issuing sovereign Sukuk, the product range
available to investors in the domestic financial market had increased, while
several retail investors had been attracted to the financial markets. (NAN)