The Lagos State Government plans to use ethical and sustainable finance such as Sukuk, Green, and Blue Bonds to complete infrastructure projects that would strengthen the state’s status as an economic hub.
The Lagos State Commissioner for Finance, Dr. Rabiu Olowo, said this at a training session on Sukuk Issuance for the staff of the Debt Management Office, conducted by STL Trustees at the State Treasury Resource Centre, CBD, Alausa, Ikeja.
Investors throughout the world, according to Olowo, are looking for ethical and sustainable funding, which is a win-win situation for all parties.
“We need to recognise additional innovative means of financing,” Dr. Olowo stated, “and the Debt Management Office is an important aspect in structuring this financing.” We want to witness the impact of how we can generate money, to be able to dream and to be a trailblazer.”
The Commissioner praised STL Trustees’ management and staff for the training, which is part of the State’s capacity building for employees, and encouraged learners to take advantage of the opportunity to help Lagos State raise funds, generate wealth, and provide answers.
Funmi Ekundayo, Managing Director of STL Trustees, stated that developed countries throughout the world use Sukuk to strengthen their economy, and that investors are seeking for more inventive methods to invest.
“It is not viable to raise a Sukuk without some asset or project to show for it since it is ethical and fair,” Ekundayo says. In order for a country to develop, it must use Sukuk funding. The Lagos State Government has been waiting a long time to issue a Sukuk, despite having raised the largest and most expensive bond issue in Sub-Saharan Africa.”
She stated that STL Trustees has been a part of every tranche of bonds issued by Lagos State, emphasising their long relationship.
Rukayat Alake Sanusi, Permanent Secretary, Debt Management Office, expressed gratitude to STL Trustees for organising the training and emphasised that it would be extremely useful to officials during the State’s first Sukuk Issuance.
Sukuk (also known as a “Islamic bond” or a “Sharia-compliant” bond) is an Islamic financial certificate that reflects a percentage of ownership in a portfolio of qualifying current or future assets. They can be thought of as an Islamic take on traditional bonds.
Sharia (Islamic law) forbids interest-bearing loans (riba), which is deemed usurious and exploitative. As a result, bonds are prohibited in Islamic finance. The federal government are currently executing some major infrastructural projects with funds raised from Sukuk bonds
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