The Federal Authorities’s ₦300 billion Collection VII Sovereign Sukuk has drawn an astonishing ₦2.205 trillion in subscriptions, marking one of the important oversubscriptions in Nigeria’s debt market historical past.
This was disclosed on Wednesday by the Debt Administration Workplace (DMO), which hailed the outcome as a robust vote of confidence in moral funding automobiles.
In response to the DMO, the provide was oversubscribed by over 735 p.c, reflecting surging investor curiosity within the non-interest {financial} instrument launched in 2017 to diversify Nigeria’s borrowing portfolio and deepen capital market participation.
“This overwhelming curiosity from a variety of traders is a transparent demonstration of confidence in Sukuk as a viable and moral funding choice,” the DMO mentioned in a press release.
The DMO famous that traders throughout the {financial} spectrum participated within the provide—together with retail traders, non-interest and standard banks, pension fund directors, fund managers, and different {financial} establishments.
This broad participation underscores the rising attraction of Sharia-compliant devices amongst each faith-based and standard traders.
As with earlier Sukuk collection, proceeds from the most recent issuance will likely be used to finance important infrastructure initiatives, together with new street constructions, bridge improvement, and rehabilitation works throughout the nation’s six geo-political zones and the Federal Capital Territory (FCT).
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“The funds will help the Federal Authorities’s dedication to infrastructure improvement, in step with the Renewed Hope Agenda of President Bola Tinubu,” the DMO mentioned.
Launched in 2017, Sukuk has turn into a key part of Nigeria’s technique to fund infrastructure sustainably and inclusively.
It gives traders a safe, asset-backed choice whereas selling transparency and improvement impression.
With Collection VII’s profitable outing, the DMO reaffirmed its dedication to offering Nigerians with secure funding options whereas supporting nationwide improvement priorities.
This record-breaking Sukuk issuance is predicted to additional enhance investor confidence and appeal to extra participation in future choices as the federal government leans on moral finance to drive {economic} progress.
