IslamicFinance.de

The Governor of Osun State in Nigeria, Rauf Aregbesola, introduced Sukuk Bond to fasttrack the state’s economic development. According to the issuing houses, Governor Aregbesola’s sukuk initiative was said to be the first Islamic bond in sub-Saharan Africa. Though the governor knows that Sukuk is Islamic in nomenclature, the Sukuk bond is a conventional bond and coordinated by the regular investors in the nation’s capital and money market. The N14. 4 billion sukuk (14. 75 percent) fixed return tranche 2 has 42 investors with Lotus Capital Limited as the leading issuing house and Augusto and co as the rating agent. The bond, which is being used to finance roads and school constructions across the state, is due in 2020.