DMO lists N130bn Sukuk on NGX, FMDQ to strengthen capital market

The Debt Management Office (DMO) has announced the listing of the federal government’s N130 billion sovereign Sukuk on the Nigerian Exchange Group (NGX) and the FMDQ Securities Exchange on Thursday, August 3, 2023.

In a statement, the DMO said the sovereign Sukuk opened for subscription in November 2022 with an initial offer of N100 billion.

The agency, however, said the Sukuk garnered immense interest from investors with a remarkable subscription level of N165.25 billion, which represents over 165 percent of the amount offered.

The DMO said in a bid to accommodate the needs of diverse investors who subscribed to the Sukuk, N130 billion was allocated.

The agency said the total sovereign Sukuk issued from 2017 till date stands at N742.557 billion and the proceeds have facilitated the construction and rehabilitation of over 75 roads and bridges across the country.

“The listing of the N130 Billion Sovereign Sukuk on the NGX and FMDQ Securities Exchange will expand the range of financial offerings available to investors in the capital market,” DMO said.

“The opportunity to buy and sell the Sovereign Sukuk will provide liquidity to investors and promote price discovery.”

Commenting on the development, Jude Chiemeka, divisional head of capital markets at NGX, commended the DMO under the leadership of Patience Oniha for its effective implementation and commitment to following due process in infrastructural financing.

He emphasised the significance of the sovereign sukuk issuance and subsequent listing on NGX to the Nigerian capital market, describing it as a “positive move”.

Chiemaka said the 10-year Ijara Sukuk due 2032 at 15.64 percent per annum was listed on the exchange on Thursday.

“This listing demonstrates the federal government’s dedication to developing critical infrastructure through innovative and cost-effective financing structures,” he said.

“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”.