DMO to List N350bn Sukuk Bonds on NGX, FMDQ

Following the successful issuance of its sixth Sukuk bond worth N350 billion in October 2023, the Debt Management Office (DMO) has announced the listing of the Sukuk on NGX and FMDQ Securities Exchange.

According to a statement by the DMO on the debt instrument, listing the N350 billion Sukuk will enable investors who didn’t subscribe to the bonds in October 2023 to participate now.

It would be recalled that the Federal Government, through the DMO, had raised about N1.092 trillion through six issuances of Sovereign Sukuk bonds while recent issuances led to the offering of N150 billion for 10-year Ijarah Sukuk, which recorded a subscription of N652.827 billion, representing an oversubscription of N502.827 billion.

Based on the impressive investor interest in the debt instrument, the Office allotted N350 billion worth of the Sukuk at a rental rate of 15.75% per annum and a tenor of 10 years.

An analysis of the issuances showed that the first Sukuk issued by the DMO was an N100 billion 7-year Ijarah Sukuk with a rental rate of 16.47% per annum issued in September 2017, which though was oversubscribed, the Office allotted N100 billion.

Also, the second Sukuk issued was an N100 billion 7-year Ijarah Sukuk with a rental rate of 15.43% per annum issued in December 2018. The offer  was oversubscribed by N32 billion but the DMO allotted N100 billion of the Sukuk.

In addition, the third Sukuk issued was a N150 billion 7-year Ijarah Sukuk with a rental rate of 11.2% per annum issued in June 2020. As was the case with previous issuances, DMO allotted N162.557 billion after recording a subscription of N669.124 billion.

The fourth Sukuk issued was a N250 billion 10-year Ijarah Sukuk with a rental rate of 12.8% per annum issued in December 2021. DMO recorded a subscription of N865 billion for this Sukuk, however, N250 billion was allotted.

The fifth Sukuk issued was an N100 billion 10-year Ijarah Sukuk with a rental rate of 15.64% per annum issued in December 2022.

Primarily, funds raised through the different Sukuk issuances are being utilized by the Federal Government for the construction and rehabilitation of over 4,000 kilometres of roads and bridges nationwide.