The Debt Management Office (DMO) has stated that the recent GFN sukuk bonds offer was oversubscribed by 435%.
The FGN sukuk bonds were initially planned to raise N150 billion for road projects across the country but received subscriptions worth N652N652.82 billion was made known in a press release by the DMO.
According to the release, the over-subscription of the bond offer is a testament to the popularity and acceptance of the bond offer among the public and the willingness of investors to support infrastructure across the country.
It stated,
“The N150 sovereign sukuk bonds whose offer for subscription closed on October 11 was well received with a total subscription of N652.827 billion.
This subscription level which is 435% of the amount offered (N150 billion), shows that the level of awareness of products and investors are willing to finance infrastructure.”
It further stated that the DMO will allocate a surplus of N350 billion to investors who subscribed to the offer and will be deployed to support road and bridge projects across the six geopolitical zones and the FCT.
It says,
“The N350 billion will be used to finance the construction and rehabilitation of roads and bridges across the six geopolitical zones and the Federal Capital Territory (FCT).”
Backstory
Nairametrics earlier reported the opening of offers for N150 billion FGN sukuk bonds at 15.75% interest per annum. The bonds come with a ten-year tenure and can be subscribed with a minimum of N1000 per unit.
Sukuk serves as a fixed-income capital market tool, authorized by the Debt Management Office (DMO) on behalf of the federal government, for funding road projects within the nation.
