NGX Lists FG N130bn Sukuk Bond

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The Nigerian Exchange Limited, on Thursday, announced the listing of the Federal Government’s N130 billion sovereign Sukuk through the Debt Management Office on its platform.

 

The NGX in a statement, said the listing was a 10-year 15.64 per cent Ijara Sukuk due in 2032.

 

According to DMO, the sovereign Sukuk opened for subscription in November 2022 with an initial offer of N100 billion and garnered interest from investors with a subscription level of N165.25 billion.

 

This represented over 165 per cent of the amount offered and N130 billion was allocated to accommodate more investors

 

The DMO added that the total sovereign Sukuk issued from 2017 till date stood at N742.56 billion and the proceeds had facilitated the construction and rehabilitation of over 75 roads and bridges across the country.

 

“The listing of the N130 billion sovereign Sukuk on the NGX will expand the range of financial offerings available to investors in the capital market. The opportunity to buy and sell the sovereign Sukuk will provide liquidity to investors and promote price discovery,” the DMO said.

 

Reacting to the development, the Divisional Head of Capital Markets at NGX, Jude Chiemeka, commended the DMO for their effective implementation and commitment to following due process in infrastructural financing.

 

He emphasised the significance of the sovereign Sukuk issuance and subsequent listing on NGX saying, “This listing demonstrates the Federal Government’s dedication to developing critical infrastructure through innovative and cost-effective financing structures.

 

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