The Debt Management Office (DMO) Nigeria is a government agency established to centrally coordinate the management of Nigeria’s debt. It is committed to meeting investors’ needs while also promoting the growth of the domestic capital market. The N150 billion Sukuk bond offer has received an N652.827 billion oversubscription, as expected by the government.
According to a statement from the DMO, the bond received oversubscription totaling N150 billion, or 435% of the amount offered.
DMO: “This shows that the level of awareness of the product has increased and that investors are willing to support the financing of infrastructure.”
The strong demand for the Sukuk the DMO added means that “the Debt Management Office allocated N350 billion to the investors who subscribed to the product.
“This money will be used to fund the construction and rehabilitation of roads and bridges across Nigeria’s six geopolitical zones and the Federal Capital Territory.”
The DMO’s Director General, Ms. Patience Oniha, anticipated that demand for the N150 billion Sukuk bond it was offering would be over-subscribed.
She said, “The extra funds that will be realised from the Sukuk bond offering, will be used for available projects.”
According to Oniha, the subscriptions made from Sukuk bond will go towards financing 53 different road projects measuring over 3,000km, and tolls collected will be used to repay the Sukuk loan.