The third Sovereign SUKUK issue by the Debt Management Office (DMO) was over-subscribed by over 446 per cent, the debt management agency has announced.

The sale of the third tranche of the seven-year Islamic Sukuk, also known as as Ijarah, at a rate of 11.2 per cent opened in May.

The sale of the Sovereign Sukuk, valued at about N150 billion offer to investors, has a June 2027 maturity date.

Announcing the result of the subscription of the offer on Friday, the DMO said the total subscription by investors was about N669.1 billion, representing a subscription level of 446 per cent.

With the latest issue, the Federal Government has issued a total of N350 billion seven-year debut Sukuk bonds used in financing the construction of almost 100 roads across the country geo-political zones since the programme began in 2017.

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The DMO said the demand for the Sukuk came from a wide range of investors, including ethical funds, insurance companies, fund managers and retail investors, amongst others.

The DMO said the participation by a wide range of investors aligned with its objectives to diversify the investor base for the Federal Government Securities and promoting financial inclusion.

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