Gulf Oil and Gas accountACCOUNT

Africa Finance Corp Issues $150 Million Debut Sukuk

Source: Reuters 1/24/2017, Location: Africa

Share |
Africa Finance Corp (AFC) said it issued a three-year $150 million sukuk, becoming the first African government-backed entity to sell an Islamic bond. The announcement confirmed a Reuters report this month that the bank would raise a dollar sukuk through a private sale.

AFC, a pan-African institution based in Nigeria, said it received subscriptions of $230 million for a debut sukuk initially planned to raise $100 million. It did not disclose the yield. "This sukuk represents a milestone in our financing activities ... to build new relationships," its Chief Executive Andrew Alli said in a statement.

AFC was set up by African governments and the private sector in 2007 to mobilise investment for infrastructure across the continent. It has since invested more than $4 billion in 26 countries. Other African-based issuers are likely to follow with sukuk of their own, analysts say, as Islamic bonds can be cheaper than conventional bonds, especially when interest from the market is high.

Nigeria, which has the largest Islamic population in sub-Saharan Africa, is already looking for advisers to organise its first Islamic bond in the domestic market. AFC's sukuk is structured with a murabaha format, a popular structure in Islamic finance in which buyer and seller agree a price mark-up. Moody's Investors Service assigned it an A3 credit rating. Emirates NBD Capital, MUFG and Rand Merchant Bank acted as joint bookrunners on the transaction.

Financials and Investment News in Nigeria >>

China >>  6/6/2018 - Sino Gas & Energy Holdings Limited’s (Sino Gas) Joint Venture company, Sino Gas & Energy Limited (“SGE”), in conjunction with its Linxing Production ...
United Arab Emirates >>  6/5/2018 - Abu Dhabi National Oil Company is considering selling another 10 percent stake in its fuel distribution business, which listed in an initial public of...

Nigeria >>  6/1/2018 - Baker Hughes, a GE company, has unveiled plans to partner with local firm, TREXM Oil and Gas Services to bring about its latest innovating metering so...
Tanzania >>  6/1/2018 - Wentworth, the Oslo Stock Exchange and AIM listed independent, East Africa-focused oil & gas company, provides an update to shareholders. ...

China >>  5/31/2018 - Sino Gas & Energy Holdings Limited has entered into a Scheme Implementation Agreement with a wholly owned subsidiary of Lone Star Fund X Acquisitions,...
Equatorial Guinea >>  5/31/2018 - We note the announcement by Golar LNG Partners’ regarding the dissolution of its OneLNG joint venture with Schlumberger. Whilst it is disappointing th...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Nigeria Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 |

More News

 

Oil & Gas Companies in Nigeria >>


Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.