DMO Lists N250bn Sovereign SUKUK On Nigerian Exchange Limited

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The Debt Management Office (DMO) has listed the N250bn 10-year 13 per cent Ijarah Sovereign Sukuk due 2031 on the Nigerian Exchange Limited (NGX).

The listing was completed on Tuesday, to facilitate trading and deepening the Nigerian capital market.

The NGX said this while announcing the development that the SUKUK met all regulatory requirements.

The bourse also noted that the SUKUK met the conditions set by the Financial Regulatory Advisory Council of Experts (FRACE) of the Central Bank of Nigeria.

The DMO issued the 10-year N250bn road Sukuk instrument at a rental rate of 12.80 per cent per annum on December 29, 2021.

NGX said, “By enhancing access to the Federal Government and the private sector, NGX has promoted and supported the growth of the debt market in Nigeria with listings worth over N2 trillion in 2021.

“The Exchange continues to deliver on its commitment to provide a platform for issuers and investors to meet their investment objectives.”

The SUKUK was over subscribed by N865bn or 346 per cent, according to DMO.

DMO said, “Proceeds of the Sovereign Sukuk since its inception have been deployed towards the construction and rehabilitation of road networks across the six (6) geopolitical zones in Nigeria and their impact have been evident.

“Currently, proceeds from the N250 Billion Sovereign Sukuk are being utilized across seventy-seven (77) key economic road projects in the country such as the completion of roads B6, B12 & Circle road, Abuja; Abuja-Lokoja road (Koton Karfe-Lokoja); Rehabilitation of Yola-Hong-Mubi road in Adamawa State; Dualization Of Kano-Katsina road in Kano/Katsina States; Dualisation of Sapele-Ewu road; Rehabilitation Of Old Enugu – Onitsha road; Dualization of Ibadan-Ife-Ilesah road in Oyo State; Dualisation Of Akure – Ado Ekiti road in Ondo/Ekiti States and a host of other projects.”

The debt manager issued three Sukuk previously in 2017, 2018 and 2020, raising N362.57bn to finance road projects across the six geo-political zones of Nigeria.