Thursday, 28 September 2017 07:27

FGN Debut Sukuk Offer Oversubscribed

The Debt Management Office (DMO) has announced that its offer for the N100
billion 7-year debut Sukuk Offer, which closed last week Friday was
oversubscribed. Investors across a broad spectrum comprising Pension Funds,
Banks, Fund Managers, Institutional and Retail Investors subscribed to the Offer
in an indication of the wide acceptance of the instrument. The Offer attracted a
Total Subscription of N105.878 billion.

With the success of the Offer, another window has been opened for the
Government to raise funds to close Nigeria’s infrastructure gap. The DMO had
indicated that funds would be utilised for the construction and rehabilitation of 25
Roads across the 6 Geopolitical zones and with the conclusion of the Offer, the
Federal Ministry of Power, Works and Housing can now actively commence work
on the roads.
With this Issuance, a new instrument, the Sovereign Sukuk, has been introduced to
Nigeria’s capital market, thereby increasing the variety of products available for
domestic Issuers and investors.
A look at the investors that subscribed for the Sovereign Sukuk revealed that new
investors have been offered an opportunity to participate in Nigeria’s growing
capital market.
Another significant objective that was achieved was the participation by over a
thousand retail investors from across the nation who accounted for over 4% of the
total subscription.
The DMO is pleased with the success of the first Offer and will continue with its
role of meeting the Government’s funding needs as well as introducing new
instruments to develop Nigeria’s capital market.

 

More in this category: « The Case for the Nigerian Sukuk