The Punch, May 27, 2014 --
Lotus Capital has received a commendation as it bags the ‘Africa deal of the Year 2013’.
The honour was conferred on the firm at the Islamic Finance News award.
According to a statement by Lotus Capital, the award is in recognition of the company’s pioneer role in structuring the first sub-sovereign Islamic bond (sukuk) in sub-Saharan Africa for Osun State Government.
The IFN is a subsidiary of the Redmoney Group, which focuses on trends and tides in the Islamic finance sector globally.
The statement said Lotus Capital had been the pioneer Islamic financial institution in the country focusing on shari’ah compliant wealth and asset management.
Since its incorporation in 2004, it had pioneered various initiatives in the Islamic finance space, it said, adding that it introduced the first shari’ah compliant mutual fund ‘the halal fund’ in 2008, an offer that was more than 200 per cent oversubscribed.
The company said it had consistently been involved with regulatory authorities in the country to develop various initiatives in the Islamic finance sector and to promote financial inclusion and diversification in Nigeria.
In 2012, Lotus Capital said it collaborated with the Nigerian Stock exchange to establish the NSE Lotus Islamic Index (NSE LII).
Lotus Capital said it aimed to create an exchange traded fund tracking this index in 2014.
In 2013, Lotus Capital was the lead issuing house in the Osun N11.4bn sukuk, which was oversubscribed with uptake from both conventional and non-interest institutions, it stated.
According to Lotus, Islamic bonds or sukuk are fast becoming a useful and popular tool in project finance and may be used to bridge the infrastructural deficit in the country.
Sukuk is a form of investment certificate representing the holder’s ownership interest in the underlying asset.