Nigeria gets N130bn loan for roads

The Debt Management Office (DMO) has announced that Nigerian investors have announced the oversubscription of its N100 billion Sovereign Al Ijarah Sukuk, a project-tied instrument that was offered by the federal government to fund national projects.

The offer for N100 billion opened on November 21, 2022, and was supported by wide public sensitization to encourage subscription from diverse investors, particularly the retail investors, the debt office said in a statement that was issued on Monday.

The initial offer size of N100 billion was upsized to N4130 billion due to the over 165 per cent subscription level.

The Sukuk bond was issued at a rental rate of 15.64 per cent per annum. This brings the total sovereign Sukuk issuance to N742.557 billion as at date.

DMO said the subscription level is evidence of investors’ confidence in the use and impact of Sukuk in the construction and rehabilitation of road infrastructure across the country.

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“The initial 0ffer size of 100 billion was upsized to N130bn due to the over 165% subscription level.

“The Sukuk was issued at a rental rate of 15.64% per annum. This brings the total Sovereign Sukuk issuance to N4742.557 billion as at date.”

“The subscription level is evidence of investors’ confidence in the use and impact of Sukuk in the construction and rehabilitation of road infrastructure across the country.

The proceeds of the 2022 Sovereign Sukuk, like the previous Sukuk Issue Proceeds, will be used solely for the construction and rehabilitation of key road projects through the Federal Ministry of Works and Housing and the Federal Capital Territory Administration.

“The DMO appreciates all the investors (Retail investors, banks, pension fund administrators, assets/fund managers, insurances companies, ethical funds, takaful operators/non-interest banks, stockbrokers, government agencies, high net worth individuals, trustees and unit trusts) who have continued to support the federal government’s infrastructure development efforts through Sukuk financing.”

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