By KADIRI ABDULRAHMAN

The Debt Management Office (DMO) says the recently issued Series VII Sovereign Sukuk valued at N300 billion attracted N2.205 trillion subscription.

The DMO said this in a statement on Wednesday, in Abuja.

According to the office, this represents a 735 per cent subscription level, a clear evidence of the huge investor-appetite for the ethical instrument it introduced in 2017.

?The Sovereign Sukuk was introduced as an innovative strategy to expand the nation?s investor-base and provide opportunities for all Nigerians to participate in the capital market.

?An analysis of the subscriptions showed that subscribers cut across various segments of the public: retail, non-interest banks and financial institutions, banks, pension fund administrators and asset managers,? it said.

The DMO said that, like the previous series, funds realised from the issuance would be used by the Federal Government to construct new roads and rehabilitate existing ones.

?The funds will also be used to build bridges in the six geopolitical zones of the country and the Federal Capital Territory.

?The raising of funds through Sukuk to finance infrastructure projects aligns with Mr President?s Renewed Hope Agenda of which infrastructure development is a key pillar, ? it said.

The debt office expressed its commitment to providing safe and liquid investment products to the public and supporting the Federal Government?s development plans.

The News Agency of Nigeria (NAN) reports that the DMO had, on May 12, hosted an investor meeting for the issuance of N300 billion series seven Sovereign Sukuk in Abuja.

The Director-General of the DMO, Patience Oniha, had said that since inception in 2017, Sukuk had become a product of choice for non- interest investors in the capital market.

According to Oniha, the acceptance of the Sukuk is an attestation of one of the major roles of the DMO to develop the domestic capital market, while also raising funds for the Federal Government.

She said that the Federal Government had been able to raise a total of N1.09 trillion through the Sovereign Sukuk since 2017, to support infrastructure development.

She recalled that the first Sukuk was issued in September 2017, adding that after extensive marketing, the offer, which was for N100 billion with a tenor of seven years received a total subscription of N105.878 billion.

?Following the modest success of the first Sukuk and the achievement recorded from September 2017 to December 2023, when the last Sukuk was issued, the DMO has raised a total of N1.09 trillion.

?With this amount, more than 4,100 km of roads and nine bridges across the six geo-political zones in Nigeria and the Federal Capital Territory (FCT) have either been constructed or rehabilitated, ? she said.

Oniha said that the projects had brought substantial benefits, including reduced travel time improved road safety and job creation.

She said that the projects also created improved access to markets for remote farmers, increased access to public services like education and healthcare, and economic development as a whole.

?In addition to those benefits, other reasons for the sustained issuance are the fact that the Sukuk is project-tied, promotes financial inclusion and contributes to the development of the domestic financial market,? she said.

She said that the Sukuk had been well accepted as demonstrated by the level of subscription received in the past.

According to her, investors get fulfillment of contributing to infrastructure development, and also get a return in terms of income which is paid every six months. (NAN)

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