DMO To List N162.557bn Sovereign SUKUK Bond On NSE, FMDQ

The Debt Management Office will list the N162.557bn raised from the third SUKUK on the Nigerian Stock Exchange and the FMDQ securities, the debt manager has said.

Nigeria’s debt manager made the disclosure in a statement on Thursday.

The DMO had in June 2020 raised N162.557bn from the issuance of the Islamic bond to fund 44 critical road projects across Nigeria.

Despite the economic downturn induced by the Covid-19 pandemic, the N150bn initially offered by the DMO was oversubscribed by investors to the tune of N669.124bn.

Nigeria’s N32.9trn debt manager only allotted N162.557bn 7-year, 11.200 per cent AL Ijarah Sovereign SUKUK due 2027.

The DMO said, “The Debt Management Office will today list its third Sovereign Sukuk “N162.557bn 7-year 11.200 per cent Al Ijarah Sovereign Sukuk due 2027” on The Nigerian Stock Exchange and the FMDQ Securities Exchange.”

DMO said with the listing, investors who are already holding the SUKUK can trade them while new investors have an opportunity to buy the SUKUK in the secondary market.

Since 2017, the DMO has raised a total sum of N362.57bn to help fund the Federal Government in the rehabilitation and construction of major economic roads across the country.

DMO noted that the listing of the SUKUK would provide various product ranges in the domestic market which would further attract retail investors.

It said, “In issuing Sovereign Sukuk, the product range available to investors in the domestic financial market has increased, while several retail investors have been attracted to the financial market.

The DMO said it hopes to provide funding for the Government, as approved from time to time, to finance the development of infrastructure.

Through the bond issuance, the DMO hopes to deepen the domestic financial markets and mobilised savings.