DMO Lists N162.55bn Sukuk on NSE, FMDQ to Fund 44 Roads

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By Ndubuisi Francis

The Debt Management Office (DMO) has listed its third Sovereign Sukuk on the Nigerian Stock Exchange (NSE) and FMDQ Securities Exchange.

The N162.557 billion, seven-year Al Ijarah Sovereign Sukuk, which is due in 2027 at 11.200 per cent per annum coupon ( annual interest rate) was massively subscribed at the time of issuance on Thursday, the DMO disclosed.

In a statement, the agency said: “The Sukuk which at the time of issuance was massively subscribed to the tune of N669.124 billion or 446%, was issued to finance 44 economic road projects across the six (6)-geopolitical zones.
“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.”

The DMO commenced the issuance of Sovereign Sukuk in September 2017 as one of the measures of attaining its strategic objective of bridging the infrastructure gap in Nigeria, in a bid to promote job creation and economic growth.

Following the successful issuance of the maiden N100 billion Sukuk in 2017, the DMO issued another N100 billion Sukuk in 2018.
The proceeds of the two Sukuks were deployed to the rehabilitation and reconstruction of road projects across the country.

In July 2020, the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed had presented a cheque of N162.557 billion, being proceeds of the third Sovereign Sukuk issued by the DMO for 44 road projects across the country, to the Minister of Works and Housing, Mr. Babatunde Fashola.

Through the Sovereign Sukuk initiative, the DMO has raised a total sum of N362.57 billion in less than three years for the rehabilitation and construction of major economic roads across the country.
By 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 markets.

The DMO says it remains committed to providing funding for the government, as approved from time to time, to finance the development of infrastructure while also deepening the domestic financial markets and mobilising savings.