The N100 billion Sukuk bond issued by the Nigerian government was oversubscribed, the Debt Management Office (DMO) has said.
A statement issued by the DMO said the bond, which had been a subject of controversy in recent time, was oversubscribed by about N6 billion naira.
The DMO also disclosed that investors in the offer, which closed on Friday with a seven-year tenor, included pension funds, banks, fund managers and retail investors.
The seven-year sukuk attracted a subscription of N105,878,320,000, according to the DMO.
The agency’s director general, Patience Oniha, said 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.
Ms. Oniha also commended the federal government for the policy support that led to the success of this initial offer, adding that it had been encouraged to introduce new instruments to aid government’s funding.
She also hinted that investment experts are optimistic that with the issuance, a new instrument has been introduced to Nigeria’s capital market, and has added to the variety of products available for domestic issuers and investors.
The Sukuk bond had generated controversies in the Nigerian polity in recent weeks.
The Christian Association of Nigeria, CAN, had attributed the introduction of the bond to “clandestine” moves to “Islamise” Nigeria and promote Islamic agenda.
In its reaction, the Muslim Rights Concern, MURIC, lambasted the Christian association for what it called attempts to incite Nigerian Christians against their Muslim neighbours, saying it could challenge the constitutionality of the introduction of the bond in the court of law. CAN’s stance was also criticised by the Nigeria Supreme Council for Islamic Affairs, NSCIA, headed by the Sultan of Sokoto.
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