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Al Baraka bank announced the raise of R400m via its second Sukuk issuance. The Sukuk issued by Al Baraka will pay a variable return over its 10-year life and qualifies as tier 2 capital for the bank. Al Baraka SA financial director Abdullah Ameed said the intention is to raise the R400m in tranches of R100m. The first tranche should be completed by the end of the year, then the lender will look to raise R300m over the course of 2020. Al Baraka CEO Shabir Chohan says the proceeds will allow the bank to continue growing its advances book, despite the weak economy.

A shariah-compliant unit trust fund is a collective investment scheme that requires all investments in the fund to adhere to Islamic law or shariah requirements. These requirements are underpinned by Islam’s prohibition on charging interest and the avoidance of companies with more than 30% debt or investments that engage in activities that are deemed to cause social harm, for example gambling, alcohol and weapons manufacturing. Sharia-compliant equity unit trusts typically invest in equities that comply with the above requirements. In addition, sharia-compliant balanced funds provide a shariah-compliant retirement or pension fund investment that invests in shariah-compliant equities as well as sukuks. Most shariah-compliant equity and balanced funds invest in both local and global equities.

The infrastructure gap is nowhere more pronounced than in sub-Saharan Africa. The Boston Consulting Group/Africa Finance Corporation report of May 2017 states that the sub-Saharan Africa infrastructure gap amounts to about $100bn in yearly infrastructure investment. Islamic finance is fundamentally aligned with economic and social development, poverty alleviation and advancement towards the UN sustainable development goals. The asset-based approach of Islamic finance is in line with traditional infrastructure-financing models that involve the procurement or construction of a tangible asset. In the past decade, Islamic finance has been growing steadily in sub-Saharan Africa. South Africa was the first African sovereign to issue sukuk, followed by Senegal, Ivory Coast, Togo and Nigeria. Most Islamic funding for infrastructure development is flowing through governmental channels. In sub-Saharan Africa large infrastructure investment is still mainly the preserve of the public sector and public-private partnerships are still in their infancy.

Amid a volatile environment, Jaiz Bank Nigeria is enjoying a rising wave of confidence among investors. Share price has been in an upward trajectory ever since the start of the year.

#Nigeria's Jaiz Bank has grown its capital base in five years from the initial N5 billion to over N15 billion. The bank disclosed that it is growing at an annual rate of 30% which makes it one of the strong players in Nigeria’s banking industry. CEO Hassan Usman said the management of the Bank grew Deposit Base from Zero to over N60 billion, and Asset Base increased from zero% to N40 billion. He added that the bank plans to grow its network through opening of additional new branches across the country. Jaiz Bank currently has a staff of 500 and has concluded plans to open new branches in Jos, Nassarawa, and Minna, as well as additional branches in Lagos. Commenting on the plan by the Debt Management Office (DMO) to float Sukuk, Usman described the move as a welcome development which is expected to go a long way in boosting the operations of the bank.

#Nigeria Deposit Insurance Corporation (NDIC) has challenged the management of Jaiz Bank to strengthen its corporate governance to face the current economic challenges of the country. Umaru Ibrahim, managing director of NDIC, gave the advice to the newly appointed managing director of Jaiz Bank, Hassan Usman. Ibrahim advised the bank to step up its public enlightenment efforts in order to increase deposits' mobilisation. He also noted the bank's challenges in investing its excess liquidity due to the absence of Sharia compliant investment windows. He noted that while a lot of countries had tapped into the Sukuk investment window, Nigeria was still lagging behind in this respect.

Jaiz Bank, the pioneer Islamic bank in Nigeria, has concluded plans to go national, few months after it received an approval-in-principle from the Central Bank of Nigeria (CBN) to extend its business nationwide. Authorities at the bank said additional branches would soon open in Lagos, Ibadan, Ilorin and Port Harcourt.

Muhammad Nurul Islam, managing director/chief executive officer of Jaiz Bank, explained that wholesale transparency in the bank’s regular operations at all levels has enabled it to move away from huge losses to break-even point in record time. However, there are also challenges for the bank, such as the need for a liquidity management instrument that is non-interest banking compliant to manage our excess liquidity. Islam also said that by 2016 end, the bank will have improved capital to enable it go outside the shores of Nigeria. So in the next five years, Jaiz Bank will go International and expand its business base.

The Nigerian Exchange Traded Funds (ETF) market has shown potential for growth, though many investors are yet to recognise its promise. In the less than four years since the market recorded its first entrants into the ETF space, there are three Exchange Traded products valued at N3.209 billion or 0.0178 percent of the total market capitalisation of the Nigerian Stock Exchange (NSE) as at August 6, 2014. Comparison of statutory charges (sell side) on equities against ETFs shows a difference of 0.5964 percent in favour of ETFs; while on the buy side, the charges are the same. On the sell side, charges to equities are 0.7050 percent, while ETFs are 0.1086 percent; on the buy side, the charges are same at 0.3750 percent.

Operators seeking the licence to underwrite Takaful Insurance have continued to turn in their applications to the National Insurance Commission (NAICOM). Since the process is still ongoing, the number of applications is still not known. Interests have been received from underwriters and the general public. NAICOM will through the licensing demystify insurance practice, making it possible for operators to operate at the grassroots. Ibrahim Hassan, deputy commissioner for Insurance (Technical) NAICOM, said the interested companies must maintain a minimum deposit in a non-interest financial institution at all times and that the provision for the establishment of an Advisory Council of Experts (ACE) must be made in the articles of the Company and there should be establishment of investment policy for the participants’ Risk Fund.

Nigerian Jaiz Bank has increased its branch network to ten, with the commissioning of its Katsina branch this week by the state governor Alhaji Ibrahim Shehu Shema. The bank now has branches in Gombe, Maiduguri, Katsina, and an additional branch in Kano, making two branches in the state. The bank has also added two branches in Abuja, the Federal Capital Territory. The branches are located at the National Assembly and Wuse District. Commissioning the bank yesterday, the governor promised to identify and support the operations of the bank.

Nigeria's Jaiz Bank is currently devising a strategy, leveraging on its relationship with the Islamic Development Bank (IDB), which will enable it invest and help facilitate financing of the nation’s power sector. Representatives of IDB are expected in Abuja for advanced talks. $3.4 billion is currently being sort by government to bridge the yawning infrastructure gap in the electricity transmission sub-sector, considered to be the weakest link in the power value chain. Last month, minister of power, Chinedu Nebo, suggested that Nigerian banks should consider forming consortiums to provide the much needed funding. Jaiz Bank as an entity is on its own not able to finance such large ticket transactions, so leveraging on this relationship with IDB is crucial to being able to invest in the power sector.

Nigerian Islamic bank Jaiz Bank has announced its commencement of Foreign Exchange trading which now makes it eligible to carry out transactions for eligible Bureau de Change operators at the Central Bank of Nigeria (CBN). It will commence bidding for its BDC customers from all branches by the first week of September 2013. The bank has also commenced over the counter transactions of Basic Travel Allowance BTA sales at all its branches. Jaiz Bank began full operations as the first Non-Interest Bank in Nigeria in January, 2012 and has since expanded its branch network to 10. The capital base of the Bank has also grown from N5 billion when it started operations last year to about N10billion. This level of capitalisation enables the Bank to apply for National Banking license from the Central Bank of Nigerian if it chooses and thus position it to operate in all the States of the Federation.

Nigerian Jaiz Bank PLC has reiterated a firm commitment to the provision of ethical banking services to its customers. The bank has unveiled its array of value adding products and services which it said are available to all irrespective of race or religion. Key amongst the areas being financed by the bank are the Agricultural Sector, Small and Medium Scale Industries and Home Finance. Other products offered by the bank are Jaiz Home Finance, Jaiz Auto Finance, Jaiz Home Appliances Finance, Lease Finance as well as Working Capital and Asset Acquisition Finance. Jaiz Bank has branches in Abuja, Kano, Kaduna, Maiduguri and Gombe with additional 10 branches to be opened across the northern part of the country before the end of this quarter.