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•Commends NGX facilitation of FG’s infrastructure drive
From Uche Usim, Abuja and Chinwendu Obienyi
The Debt Management Office (DMO), on Thursday, listed N130 billion sovereign Sukuk on the Nigerian Exchange Group (NGX) and the financial markets dealers quotation (FMDQ) Securities Exchange, bringing the total sovereign Sukuk issued from 2017 till date to N742.557 billion.
It stated that the Sukuk funds have facilitated the construction and rehabilitation of over 75 Nigerian roads and bridges across the country.
DMO said sovereign Sukuk was opened for subscription in November 2022 with an initial offer of N100 billion, but garnered immense interest from investors with a remarkable subscription level of N165.25 billion which represents over 165per cent of the amount offered. To accommodate the needs of diverse investors who subscribed to the Sukuk, N130 billion was allocated.
The DMO in a statement said the listing of the N130 billion sovereign Sukuk on the NGX and FMDQ Securities Exchange 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.
Meanwhile, in a demonstration of the Federal government’s dedication to developing critical infrastructure through innovative and cost-effective financing structures, the Nigerian Exchange Limited (NGX) on Thursday, announced that it has admitted the listing of the FG’s N130 billion Sovereign Sukuk through the Debt Management Office (DMO) on its platform.
The listing of the 10-year 15.64 per cent Ijara Sukuk due 2032 is coming after the successful oversubscription of the N100 billion which opened in November 2022.
According to the DMO, this represented over 165 per cent of the amount offered and in a bid to accommodate the needs of diverse investors who subscribed to the Sukuk, N130 billion was allocated. The total Sovereign Sukuk issued from 2017 till date currently stands at N742.557 billion and the proceeds have facilitated the construction and rehabilitation of over 75 roads and bridges across the country. Speaking in a statement yesterday, the DMO said, “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.”
Commending the DMO’s leadership of Director-General Patience Oniha for their effective implementation and commitment to following due process in infrastructure financing, the Divisional Head of Capital Markets at NGX, Jude Chiemeka, emphasized the significance of the Sovereign Sukuk issuance and subsequent listing on NGX.
He said, “This listing demonstrates the federal government’s dedication to developing critical infrastructure through innovative and cost-effective financing structures. NGX is fully committed to providing a robust exchange infrastructure that facilitates efficient capital accessibility for the government to raise essential funds, addressing the infrastructural gap and boosting economic growth. The listing of the Sovereign Sukuk on the Exchange is seen as a positive move, offering an exit opportunity for existing investors and further strengthening the Nigerian capital market”.
Meanwhile, investors trading at the floor of the NGX, have now gained N583 billion in two days already. Transactions had kick-started the month of August on a negative note as the NGX All Share Index (ASI) declined by 0.23 per cent.
However, price appreciation in Sterling Bank, NASCON, MTNN, Nigerian Breweries drove the index 1.55 per cent higher to close at 65,263.06 points on Thursday after posting 0.12 per cent in the previous trading session.
The market capitalization which had increased by N41 billion on day two of August, increased by N542 billion yesterday. At the close of trading yesterday, the volume of stocks traded grew by 34.61 per cent to 445,275 million shares valued at N5.08 billion exchanged in 7,095 deals.
