IslamicFinance.de

#Nigeria announced the issuance of N100billion ($328million) sukuk, which brings to close a process that started last year. The first sign of the process was given last year by Alhaji Mahmoud Isa-Dutse, Permanent Secretary at the Ministry of Finance. He said that sukuk could be linked to a wide range of projects from power plants to railways. The sukuk is a 7-year tenor debt instrument which will go on sale from June 28, 2017, for three days via book building. It will be traded on the Nigerian Stock Exchange (NSE) and the FMDQ Securities Exchange OTC platform. Dr. Abraham Nwakwo, Director General of the Debt Management Office, said the sukuk was part of the plan to fast track the development of infrastructure and engage in project-tied capital raising.

After the approval for “Sharia compliant” equities by Central Bank of Nigeria (CBN) last year, in 2012 an Islamic window opened on the trading floor at the Nigerian Stock Exchange (NSE). This is the first faith-based financial window in Nigeria, which fact causes fears that a deliberate Islamic financial services industry may have unintended consequences on equity transactions. The goal is to enthrone Islamic financial principles in equity trading, by tracking the performance of Sharia compliant stocks on the exchange floor.

Today is the start date of the new Islamic Equity Index. It debuts on the Nigerian Stock Exchange (NSE) and aims to contribute to the expansion of the Nigerian market. NSE's management has signed a Memorandum of Understanding (MoU) with Lotus Capital Limited, according to which the “NSE Lotus Islamic Index” (with the code NSE LII) will be compliant with the principles of Shari’ah.