Sukuk: DMO appoints Lotus Financial Services as joint adviser

The Debt Management Office (DMO), has appointed Lotus Financial Services Limited as a joint financial adviser to the second tranche of the N100 billion Sukuk floated by the Federal Government of Nigeria.

This was disclosed in a statement by the investment management company. The firm made known that the appointment is coming for the second year running as a result of its performance and role in the first Sukuk issuance.

The statement said similar to the first N100 billion Sukuk issued in 2017 which recorded over 100 per cent subscription, the second Sukuk was issued to construct and rehabilitate 28 economic roads across the six geopolitical zones of the country.

The statement read in part,

“The offer is part of the Federal Government’s efforts to promote financial inclusion and increase capital spending.

“Since inception, Lotus has led capacity building and product development initiatives in the non-interest industry and has successfully advised and raised funds for the Federal and State governments and several corporations in Nigeria.”

About Sukuk bonds 

Sukuk is derived from the word Sakk, which can be translated to mean legal instrument, deed, and cheque. Sakk can also mean to strike a deal on a paper document.

The origin of Sukuk dates back to 7th century AD, where the first Sukuk transaction took place in Damascus, Syria in the Great Mosque of Damascus (Umayyad Mosque).

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Due to the fact that Islam prohibits usury – collecting interest from your loans – interest based bonds are banned in Muslim nations.

About Lotus Financial Services Limited

Lotus Capital is a full-service, Halal investment management company specialising in Shari’ah compliant asset management, private wealth management, and financial advisory services. Lotus Capital was founded in June 2004 with the specific objective of meeting the investment needs of ethical individuals, businesses, and organisations across West Africa.

Lotus Capital is duly registered with the Securities & Exchange Commission (SEC) as Fund Managers, Corporate Investment Advisers, and Issuing House.

Lotus Capital is a Nigerian pioneer in the emerging financial niche of Islamic finance with a unique equitable interest-free solution.

Source: Nairametrics

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