Reports has it that the N105 billion seven-year Sukuk offer debuted by the Debt Management Office (DMO), was oversubscribed. The offer which closed last week Friday, attracted investors from across a broad spectrum of the public comprising pension funds, banks, fund managers, institutional and retail investors.
Reacting to the pleasant development, the Director General of DMO, Ms Patience Oniha said that the acceptance of the offer was an indication of the viability of the instrument as an investment option as well as a demonstration of utmost faith in the economy.
She commended the federal government and, in particular, the Minister of Finance, Mrs Kemi Adeosun, for the policy support that led to the success of this initial offer which industry watchers accept as another window that has opened for the government to raise funds to fill the nation’s yawning infrastructure gap.
Investment experts are optimistic that with this issuance, a new instrument, the Sovereign Sukuk, has been introduced to Nigeria’s capital market, and has added to the variety of products available for domestic issuers and investors.
They pointed out that Sukuk, as a novel investment platform, achieved one of its aims which is to offer new investors an opportunity to participate in Nigeria’s growing capital market.
With this positive development, the DMO is energised to continue with its role of meeting the Government’s funding needs as well as introducing new instruments to develop Nigeria’s capital market. Also, it is hoped that the success of this offer and the proceeds from it, will enable the Federal Ministry of Power, Works and Housing to commence work on the road projects in earnest.
Over a thousand retail investors from across the nation accounted for over four per cent of the total subscription.