The Debt Management Office (DMO) has listed the N250 billion Sovereign Sukuk which was issued in December 2021, on the Nigerian Exchange Limited (NGX) and FMDQ Securities Exchange Limited.
This disclosure was made by the Debt Management Office in a press release on its official website titled “Listing of N250 Billion Sovereign SUKUK on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited”.
The listing which is expected to facilitate trading and maximize market liquidity for investors in the Sovereign Sukuk would further deepen the Nigerian capital market.
The sovereign Sukuk was successfully listed on NGX on Tuesday, July 5, 2022, having fulfilled the conditions set by the Central Bank of Nigeria’s Financial Regulatory Advisory Council of Expert (FRACE), which stipulated that trading in the instrument would only be permissible after the commencement of works on the road projects scheduled for construction through the Sukuk assets.
Investors are beginning to have increasing confidence in the benefit of the SUKUK to the development of the Nigerian economy as this fourth issue of the Sukuk was highly over-subscribed, recording the highest subscription since the first Sukuk issuance in September 2017.
The Sovereign Sukuk will be dedicated to road projects and will enable the government to achieve significant progress in bridging the infrastructure gap in Nigeria. This highlights the drive of the federal government toward inducing economic growth through the development of critical infrastructure in the country.
What is the DMO Saying
According to the DMO, Proceeds of the Sukuk since its inception have been deployed towards the construction and rehabilitation of key road projects across the six (6) geopolitical zones in Nigeria.
What you should know
- A Sovereign Sukuk is an investment certificate that represents the ownership interest of the holder in an asset or pool of assets.
- The N250 Billion Sovereign Sukuk is the fourth Sovereign Sukuk issued by the DMO and it had a massive over-subscription of N865 Billion at the time of issuance.
- The Ijara Sovereign Sukuk which is for 10 years with a return rate of 13% was issued on December 29, 2021
