New Telegraph

Sukuk: FG Deploys N742.55BN For Road Construction, Rehabilitation

The Debt Management Office (DMO) on behalf of the Federal Government has so far raised N742.55 billion from Sukuk Sovereign Bond for rehabilitation and construction of 400 kilometers of roads and bridges in the country. DMO confirmed the update via its verified X handle on Thursday.

The road construction, rehabilitation are spread across the six geopolitical zones of the country. DMO started issuing Sovereign Sukuk in 2017 with a maiden issuance of N100 billion in September. The DMO had issued four tranches of Sukuk between 2017 and December 2022, bringing the total amount raised as at Decem- ber 2022 to N742.56 billion.

From the Sukuk issued between 2017 and 2021, a total of N612.56 billion was raised and deployed to the construction and rehabilitation of sections of 71 roads and four bridges covering a total of 2,820.06km. To deepen Sukuk bond instrument, DMO facilitated it on the Nigerian Exchange Group (NGX) and the FMDQ Securities Exchange.

It was opened for subscription in November 2022 with an initial offer of N100 billion. The subscription garnered immense interest from investors with a remarkable subscription level of N165. 25 billion, which represents over 165 per cent of the amount offered.

To accommodate the needs of diverse investors, who subscribed to the Sukuk, N130 billion was allocated. “Total Sovereign Sukuk is- sued from 2017 till date stands at N742.557 Bilion and the proceeds have facilitated the construction and rehabilitation of over 75 Nigerian roads and bridges across the country,” debt agency had clarified.

Read Previous

NABDA: Nigeria Pushing for Self-Sufficiency in Dairy Production

Read Next

Rubber Plantation Can Generate N200bn IGR for Cross River State