Sukuk bonds are generally structured to generate returns to ethical investors without infringing on the Islamic principles which forbid interest payments. It also represents an ownership interest in the asset to be financed rather than in a debt obligation. It is one of the major instruments in the fast-developing world of Islamic finance.The Nigerian Exchange Limited has been at the forefront of promoting opportunities offered by Islamic finance products and instruments in recent time.
The CEO of APT Securities and Funds Limited, Mallam Garba Kurfi says that Sukuk are certificates issued to investors representing a tangible asset, service, project business or joint venture. The asset must be Shariah-compliant. Sukuk has been issued so far by Osun State and three times by the federal government.Kurfi says “Sukuk bonds represent ownership of assets, while conventional bonds represent a pure debt obligation.
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