Nigerian Exchange Limited (NGX), on Thursday listed the Federal Government’s N130bn, 10-year 15.64% Ijara Sukuk due 2032 Sovereign Sukuk through the Debt Management Office (DMO) on its platform.
The Sovereign Sukuk opened for subscription in November 2022 with an initial offer of N100bn, but garnered immense interest from investors with a remarkable subscription level of N165.25bn, representing over 165% of the offer.
In a bid to accommodate the needs of diverse investors who subscribed to the Sukuk, the statement said N130bn was allocated, bringing the total Sovereign Sukuk issued since 2017 to N742.557bn.
Proceeds of the bonds, it noted, have facilitated the construction and rehabilitation of over 75 roads and bridges across the country, quoting the DMO as saying that “the listing of the N130bn Sovereign Sukuk on the NGX will expand the range of financial offerings available to investors in the capital market.
“The opportunity to buy and sell the Sovereign Sukuk will provide liquidity to investors and promote price discovery,” it stressed.
According to Jude Chiemeka, the Divisional Head of Capital Markets at NGX, commended the DMO under the leadership of Director-General Patience Oniha for its effective implementation and commitment to following due process in infrastructural financing.
He emphasized the significance of the Sovereign Sukuk issuance and subsequent listing on NGX, which he stressed “demonstrates the federal government’s dedication to developing critical infrastructure through innovative and cost-effective financing structures. NGX is fully committed to providing a robust exchange infrastructure that facilitates efficient capital accessibility for the government to raise essential funds, addressing the infrastructural gap and boosting economic growth.
“The listing of the Sovereign Sukuk on the Exchange is seen as a positive move, offering an exit opportunity for existing investors and further strengthening the Nigerian capital market,” Chiemeka noted further.