Federal Government’s Sovereign Sukuk bond of N150n offered to investors was oversubscribed by N519.12bn, Debt Management Office has said.

DMO said on Friday in a statement that the offer attracted a total subscription of N669.12bn, representing a subscription level of 446 per cent.

It said it allotted N162.557bn to investors in the third Sovereign Sukuk.

The debt office said the high demand for the bond came from a wide range of investors, including ethical funds, insurance companies, fund managers and retail investors.

The statement said the participation by a wide range of investors was in line with the DMO’s objectives of diversifying the investor base for government securities and promoting financial inclusion.

DMO said, “The issuance of the third Sovereign Sukuk, which followed the debut issuance of N100bn in September 2017 and a second issuance of another N100bn in December 2018, is based on the DMO’s commitment to using borrowed funds to finance infrastructure.

“The Sukuk issuances are project-tied and are used to finance specific projects, which are disclosed to investors.”

 It said the proceeds of the issuance would be used to finance 44 critical road projects across the six geopolitical zones of the country.

Punch