Despite controversy, FG’S N100m Sukuk bond oversubscribed by 6%

The Debt Management Office on Tuesday announced that the controversial Federal Government’s N100 billion debut Sukuk offer, which closed last Friday, was oversubscribed by 5.87 per cent with N105.88 billion total subscription.

The N100 billion seven-year debut Sukuk offer is a project-tied investment facility. The DMO said that it attracted investors from across a broad spectrum of the public including pension funds, banks, fund managers, institutional and retail investors.

The Christian Association of Nigeria (CAN) had kicked against the Sukuk offer, alleging that it was part of the plot of thePresident Muhammadu Buhari-led Federal Government to Islamise the country.

But following the record acceptance of the offer, DMO director general, Ms. Patience Oniha, said such an acceptance goes to illustrate the viability of the instrument as an investment option and demonstration of utmost faith in the economy.

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She therefore applauded the Federal Government, especially the Minister of Finance, Mrs. Kemi Adeosun, for the policy support which led to the achievement of the initial offer.

This was even as she said that industry watchers have accepted the offer as another window that has been opened to the government to raise funds to fill the nation’s yawning infrastructure gap.

 

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