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FG’s N100 Billion Sukuk Bond Oversubscribed By N6 Billion

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The N100 billion sukuk bond which was vehemently opposed by the Christians Association of Nigeria,CAN has been oversubscribed according to the Debt Management Office (DMO).

A statement issued by the DMO said the bond was oversubscribed by about N6 billion naira. The investors in the offer, which closed on Friday with a seven-year tenor, included pension funds, banks, fund managers and retail investors according to the DMO.

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.

She 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.

CAN had accused the government of Islamizing Nigeria with the  introduction the sukuk bond, an Islamic monetary instrument. This position was countered by the Muslim Rights Concern, MURIC, by accusing CAN of Islamophobia.

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Akin Akingbala is an international journalist based in Lagos, Nigeria. Aside being happily married, he has interests in music, sports and loves traveling.

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