Jaiz Bank proposes Sukuk fi nancing for Kano IPP
The
management of Jaiz Bank has proposed to assist the Kano State
government finance its Independent Power Project, IPP, through the Sukuk
approach.
To this end, the Managing Director of the bank, Mr. Muhammad Nurul Islam, led his management team on a courtesy visit to the Kano State governor, Rabiu Musa Kwankwaso, recently to present the proposal.
Nurul Islam told the governor that the bank has assisted the Osun State government to raise N10 billion for the construction of modern primary schools in the state through the same approach.
Similarly, he said Jaiz Bank was currently negotiating with three other state governments to fund various capital projects, adding that Sukuk has helped the Gulf and South-East Asian nations to leap-frog their development.
The managing director expressed belief that it would be a suitable vehicle to finance the proposed Kano State Government IPP, stressing that it is a product for financing all sorts of infrastructural projects and commercial ventures.
“Jaiz will be honoured to have the opportunity to present a Sukuk proposal to the government as a vehicle for fast tracking infrastructural development. Sukuk has helped the Gulf and South-East Asian countries to leap-frog their development; we therefore believe that it will be a suitable vehicle for financing the proposed Independent Power Project the state government is embarking on.
“Recently, we concluded raising N10 billion Sukuk on behalf of the Osun State government for seven years for the construction of modern primary schools in the state. We are currently in discussion with three other state governments to raise funds for various capital projects using the same vehicle.”
The Jaiz Bank boss further added that; “While we have enclosed the detailed proposal about Sukuk, we would like to mention that it is a product for financing all sorts of infrastructure projects and commercial ventures assuring no fixed return, but return shall be based on actual earnings of the project either as principal plus rent or principal plus profit earned by the project.”
Nurul Islam used the opportunity to plead with Governor Kwankwaso to intervene in the effort by the bank to get its N128 million invested in the Kano Geographic Information System, KANGIS, before the government took it over.
According to him, “When KANGIS project started, we partnered with the state government by providing seed capital needed to start the project. The project was, however, taken over by the state government from the consortium as a result of inability to provide clear road map by the consultants within the agreed time frame.
He added: “Whereas, Jaiz Bank complied with its commitment as agreed upon, Jaiz is, however, yet to be paid back the equity it invested in KANGIS. We were informed that the State Executive Council had in October 2013 approved that the bank be paid back the N128 million it invested.”
To this end, the Managing Director of the bank, Mr. Muhammad Nurul Islam, led his management team on a courtesy visit to the Kano State governor, Rabiu Musa Kwankwaso, recently to present the proposal.
Nurul Islam told the governor that the bank has assisted the Osun State government to raise N10 billion for the construction of modern primary schools in the state through the same approach.
Similarly, he said Jaiz Bank was currently negotiating with three other state governments to fund various capital projects, adding that Sukuk has helped the Gulf and South-East Asian nations to leap-frog their development.
The managing director expressed belief that it would be a suitable vehicle to finance the proposed Kano State Government IPP, stressing that it is a product for financing all sorts of infrastructural projects and commercial ventures.
“Jaiz will be honoured to have the opportunity to present a Sukuk proposal to the government as a vehicle for fast tracking infrastructural development. Sukuk has helped the Gulf and South-East Asian countries to leap-frog their development; we therefore believe that it will be a suitable vehicle for financing the proposed Independent Power Project the state government is embarking on.
“Recently, we concluded raising N10 billion Sukuk on behalf of the Osun State government for seven years for the construction of modern primary schools in the state. We are currently in discussion with three other state governments to raise funds for various capital projects using the same vehicle.”
The Jaiz Bank boss further added that; “While we have enclosed the detailed proposal about Sukuk, we would like to mention that it is a product for financing all sorts of infrastructure projects and commercial ventures assuring no fixed return, but return shall be based on actual earnings of the project either as principal plus rent or principal plus profit earned by the project.”
Nurul Islam used the opportunity to plead with Governor Kwankwaso to intervene in the effort by the bank to get its N128 million invested in the Kano Geographic Information System, KANGIS, before the government took it over.
According to him, “When KANGIS project started, we partnered with the state government by providing seed capital needed to start the project. The project was, however, taken over by the state government from the consortium as a result of inability to provide clear road map by the consultants within the agreed time frame.
He added: “Whereas, Jaiz Bank complied with its commitment as agreed upon, Jaiz is, however, yet to be paid back the equity it invested in KANGIS. We were informed that the State Executive Council had in October 2013 approved that the bank be paid back the N128 million it invested.”
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