Launch of Nigeria's first Islamic bond
Nigeria's Osun State has issued the country's first Islamic bond, making Nigeria the first big economy in sub-Saharan Africa to market a sukuk.Nigeria's Osun State has issued the country's first Islamic bond, making Nigeria the first big economy in sub-Saharan Africa to market a sukuk.
Ten billion naira (€45.9 million) of seven-year sukuk are expected to be listed on the Nigerian Stock Exchange, denominated in local currency, Reuters reports.
Local credit rating agency Agusto & Co gave an A rating to the sukuk, which is expected to appeal to investors. The offer will close at the end of September 2013.
Islamic finance in Nigeria could benefit from an 80 million-strong untapped market of Muslims without access to finance.
Even though the country counts the largest Muslim population in sub-Saharan Africa, Islamic finance institutions have been slow to develop.
The first bank specialised in the field, Jaiz Bank, opened its doors in February 2012 in Abuja. It is planning to open an additional 100 branches across the country.