Investors Oversubscribe 2nd N100bn FGN SUKUK

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FG's SUKUK
FG's SUKUK

Investors in the nation’s capital market have sustained interests in the Federal Government’s Sukuk, as they oversubscribed the second edition of the ethical instrument public offering.

The result of last week’s exercise as announced by the Debt Management Office, DMO, indicated that N132 billion was staked for N100 billion Sukuk put on offer.

With a seven-year tenure and 15.743 per cent yield, the Sovereign Sukuk would be due 2025.

In the announcement, the DMO said it received subscriptions from 2073 investors.

“The high success rate of the Sukuk, which is the second by the Federal Government of Nigeria showed investors’ appetite for FGN securities and also their interest in the fact that the proceeds will be used to improve the state of road infrastructure in the country,” the agency said.

Some of the roads being constructed with Sukuk proceeds include the Onitsha-Enugu Expressway; Abuja-Abaji Expressway; Lokoja-Benin Dualisation; Kaduna-Zaria-Kano Road reconstruction project; Loko-Oweto Bridge linking Benue and Nassarawa states; Kaduna Eastern Bypass and several others.